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 Callaway Golf Co (NYSE:ELY) were getting banged up today, falling as much as 10% after the company reported earnings last night.

So what: The golf brand actually delivered a stellar quarter, as sales jumped 22% to $352 million, well ahead of estimates at $314 million, and operating income improved by more than 50% to drive a profit of $0.61 per share. Analysts had expected just $0.45 per share on the bottom line. Despite the strong quarter, the stock sold off as management warned of "challenging market conditions" in the current quarter due to the especially cold winter and late start to the golf season, and said that sales would be flat to slightly negative. 

Now what: Today's sell-off seems exaggerated given the company's strong performance in the first quarter. CEO Chip Brewer called the results "pleasing," and credited Callaway's focus on more "consumer-oriented" products. The poor weather is outside of the company's control, and its strategy shift should pay off in the long run even if short-term results are disappointing for other reasons. Management maintained its full-year EPS guidance at $0.12-$0.16, but that was short of estimates of $0.18, which may have also prompted the stock's decline.