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 Senomyx (NASDAQ:SNMX) dropped as much as 10.6% today after releasing first-quarter results.

So what: Revenue was up 9.3% from a year ago, to $8.2 million, but the company still lost $2 million, or $0.05 per share. Results easily topped expectations, but guidance fell short. 

Management expects fiscal 2014 revenue of $32 million to $35 million, below the $35.1 million estimate, and an expected loss of $0.23 to $0.28 per share was at the low end of expectations.

Now what: The sell-off was driven by weaker-than-expected guidance numbers and the realization that shares may have gotten ahead of themselves after the Pepsi announcement. Long term, I don't see any reason to change your investment thesis, but shares can be volatile in a stock where so much growth is priced in. That risk is why I'll stay out of shares, and wait for more commercial agreements and revenue before jumping in.

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.