WASHINGTON (AP) ¿ Shares of Applied Signal Technology Inc. tumbled on Wednesday, a day after the manufacturer posted a fiscal third-quarter profit that fell short of Wall Street's forecast.

Shares of the Sunnyvale, Calif.-based company fell $2.36, or 9 percent, to $23.86 in morning trading.

The manufacturer of intelligence, surveillance and reconnaissance products earned $3.3 million, or 25 cents per share, for the period ended July 31, compared with $1.97 million, or 15 cents a share, a year earlier.

Analysts were forecasting a profit of 26 cents per share, according to a survey by Thomson Financial.

For the quarter, revenue came to $49.5 million, down from $49.9 million. That was also below analysts' predictions of $53.6 million.

Stifel, Nicolaus & Co. Inc. analyst Stephen Levenson said weakness in the company's stock price could be seen as a "buying opportunity." He reiterated his "Buy" rating and $30 price target.

SunTrust Robinson Humphrey analyst Chris Donaghey lowered his revenue estimate from $207 million to $206 million and raised his earnings estimate from $1.09 to $1.10. He maintained his "Neutral" rating.
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