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 oil and gas explorer Stone Energy (NYSE:SGY) jumped as much as 12% today after the company reported earnings.

So what: Revenue rose 8.5% in the quarter to $245.9 million and earnings per share jumped 26% to $0.78. The average revenue estimate was $223 million, and earnings were expected to be $0.68, so the results easily topped expectations.  

Now what: The company's strategic shift to focus on the Marcellus Shale and the Gulf of Mexico deepwater appears to be paying off. The company is also expecting growth over the next year as it drills wells offshore. Management is also looking to sell some assets, which will help the balance sheet as it focuses on growth. Shares still trade at less than 10 times trailing earnings, and there's room to run given the operational improvements this quarter.

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