Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of automotive equipment supplier Meritor (NYSE:MTOR) jumped 23% today after the company released earnings.

So what: Sales dropped 22% to $908 million and the company reported a net loss of $4 million, or $0.04 per share. Revenue fell short of estimates but investors are clinging to adjusted earnings per share of $0.06, which came in a penny ahead of expectations.  

Now what: Investors are betting on a big turnaround for Meritor and management is hoping for adjusted earnings of $0.25-$0.35 per share this year. I just don't like the trends we're seeing right now from a revenue perspective. I'm going to leave this move alone today and wait for more sound fundamentals before looking at the stock again.

Interested in more info on Meritor? Add it to your watchlist by clicking here.

Motley Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.