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 Energy Recovery (NASDAQ:ERII) jumped a whopping 36% today after reporting earnings.

So what: Fourth-quarter revenue was up 54% to $23.2 million and net income swung from a loss to a $6.7 million, or $0.13 per share, profit. That's $0.05 better than estimates and revenue was better than expected as well.  

Now what: The demand for desalination products in the Middle East and western U.S. helped drive revenue and earnings growth. Given likely growth in this business, I think there's a lot of potential for Energy Recovery. Shares aren't cheap right now and analysts only expect a $0.02-per-share profit last year but the decade-long story is worth paying for right now.