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 industry supplier Power Integrations Inc (NASDAQ:POWI) dropped as much as 35% today after reporting earnings.

So what: Revenue rose 8% from a year ago to $83.1 million, and non-GAAP earnings jumped 19% to $0.56 per share. The problem is that revenue growth fell short of estimates, and earnings per share were $0.03 short as well.  

Now what: This is a huge sell-off for an earnings miss, particularly one that only missed by a few pennies. Management also said it expected sequential revenue growth next quarter as growth applications pick up. It looks like the sell-off was way overdone, and with shares trading at just 17 times this year's estimates, I think there's upside even after this earnings miss.

Travis Hoium 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.