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 Control4 Corporation (NASDAQ:CTRL) jumped more than 10% during intraday trading Friday, then closed up around 7% after the company posted solid third-quarter earnings results and forward guidance.

So what: Quarterly revenue rose 18% year over year, to $33.6 million, which translated to non-GAAP net income of $2.9 million, or $0.12 per share. For reference, analysts were looking for lower adjusted earnings of just $0.08 per share on sales of $33.64 million.

In addition, Control4 issued in-line fourth-quarter guidance, saying it expects Q4 sales between $35 million and $36.5 million, and non-GAAP net income per share between $0.10 and $0.15.

Now what: It's also worth noting that Control4 swung to a GAAP net profit this quarter of $1.7 million, or $0.07 per share, compared with a GAAP net loss of $4.1 million, or $1.73 during the same year-ago period.

Even still, be aware that the stock currently trades at a premium near 40 times next year's estimated earnings. As a result, while today's results were encouraging, I think investors would still be wise to approach the stock with caution.

Fool contributor Steve Symington 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.