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 engineered product maker ESCO Technologies (NYSE:ESE) dropped 10% today after a disappointing earnings report.

So what: Net sales dropped 4.4% in the fiscal second quarter to $166.2 million, short of the $170.5 million estimate. Earnings per share after adjusting for non-operating charges were $0.28, still below the $0.34 estimate.  

Now what: The AMI market was blamed for the miss as customer delays have put pressure on revenue. Still, investors weren't giving the company a break, especially after earnings per share guidance came in at $1.60-$1.80, well below the $2.08 Wall Street expected. I'm not buying the discount today and need to see strong revenue and earnings growth before considering this stock.

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