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 headphone specialist Skullcandy, Inc. (NASDAQ:SKUL) soared a whopping 46% today after its quarterly results and outlook topped Wall Street expectations.

So what: The stock had pulled back in recent weeks on serious valuation worries, but today's Q4 earnings beat -- EPS of $0.13 versus the consensus of $0.09 -- coupled with upbeat guidance is quickly putting those concerns to rest. While earnings fell 69% and revenue sank 28%, the company managed to drastically cut sales to the off-price channel and enforce its minimum advertised pricing strategy online all while controlling inventory levels, giving analysts plenty of good vibes over its positioning going forward.

Now what: Management now sees full-year EPS of $0.10-$0.14 on sales growth in the mid- to high-single digits, nicely ahead of Wall Street's view of $0.10 in per-share earnings and revenue growth of 4.2%. "With our five key growth pillars established and a clear understanding of our consumer, where we will innovate and focus, and a segmented distribution strategy, it is now about executing," said President and CEO Hoby Darling. "We are confident we can achieve our vision of being a global audio leader while delivering profitable growth, increased shareholder value and living by our core values." Given Skullcandy's red-hot shares and forward P/E around 90, however, I'd wait for much of the excitement to fade before betting on it.