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 home decor retailer Kirkland's (NASDAQ:KIRK) spiked 10% this morning after its quarterly results and outlook excited Wall Street.

So what: The stock has soared over the past year on a string of market-topping quarters, and today's third-quarter results -- EPS of $0.06 beat estimates by $0.04 on revenue growth of 10% -- coupled with upbeat guidance only reinforce that momentum. Unfortunately for shareholders, most of the initial excitement over the report has worn off (the stock is now up only 2% at the time of writing), suggesting that it's getting tougher to impress Mr. Market given the stock's recent surge.

Now what: Management now sees full-year EPS of $0.90-$0.95, up from its prior view of $0.80-$0.90 and pretty much in line with Wall Street's forecast of $0.91 per share. "Our plan for fiscal 2014 is to continue to build on our momentum with growth in sales, margin improvement, the execution of our multi-channel strategies and further investments in branding and e-commerce," CEO Robert Alderson said. "We also believe that fiscal 2014 is an opportune time to begin a more aggressive approach to store growth." Of course, with Kirkland's shares still up about 170% from their 52-week lows even after the midday pullback, I'd wait for a wider margin of safety before betting on that bullishness. 

Fool contributor Brian Pacampara 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.