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 Xcerra Corp (NASDAQ:XCRA) were down 16.1% as of 11:30 a.m. Thursday after the company released mixed fiscal-third-quarter 2015 results and disappointing guidance.

So what: Quarterly net sales fell 1.7% year over year to $103.6 million, which translated to adjusted net income of $5.7 million, or $0.10 per diluted share. Analysts, on average, were anticipating adjusted net income of only $0.07 per diluted share, but on higher sales of $105.4 million.

In addition, Xcerra expects current-quarter revenue to be $110 million to $115 million, which should result in adjusted net income per share of $0.11 to $0.16. Wall Street was more optimistic on both fronts, with consensus estimates calling for fiscal-fourth-quarter revenue of $122.6 million, and earnings of $0.22 per share. 

Now what: To be fair, Xcerra CEO David Tacelli noted Q3 earnings were above expectations, and revenue was within its own guidance range -- albeit at the lower end -- provided in February. And while Xcerra's fiscal Q4 guidance is light, the company says it still expects to outperform industry peers through both new product launches in currently unserved markets, as well as market share gains in existing segments.

Nonetheless, it's hard to blame investors for bidding shares of Xcerra lower today as they adjust expectations downward. For now, that's why I'm perfectly content continuing to watch Xcerra's progress from the sidelines.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.