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 Meritage Homes Corp (NYSE:MTH) dropped as much as 10% today after the company reported earnings.

So what: Homes closed in the first quarter were up 5%, to 1,109, and revenue jumped 21%, to $408.3 million, but fell short of the $438 million estimate. On the bottom line, net income more than doubled, to $25.4 million, or $0.62 per share, but fell $0.02 short of estimates. 

Now what: This is more of a sign of the macro environment in housing than a specific problem at Meritage. Unit sales were down overall in the first quarter, and I actually think Meritage did a nice job shifting to higher-end homes, where sales are more brisk. This is a short-term challenge, and I don't see a reason for long-term investors to panic today.

Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Meritage Homes. 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.