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.