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 EXCO Resources (NYSE: XCO) were sliding today, down as much as 10%, after the oil-and-gas explorer came up short on the bottom line in its second-quarter earnings report.

So what: EXCO posted earnings per share of $0.10 for the period, below analyst expectations at $0.11, but an improvement from $0.05 a share last year. Revenue jumped 27.4% in the quarter to $150.3 million, easily beating the analyst consensus at $141.2 million. EXCO also showed improvements in production efficiency as costs per million cubic feet equivalent (mcfe) dropped from $0.38 to $0.31. Management also noted the addition of further territory in the Eagle Ford and Haynesville plays to help boost production.

Now what: Aside from the narrow earnings miss, this seemed to be a pretty solid report. With analysts predicting a drop in revenue the next two quarters, the lower-than-expected profits may sting more than normal. Still, EXCO looks a solid bet after today's drop, as it trades at a reasonable value, and its plans to expand should ensure growing profits.