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.
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

If you liked this article you might like

What's Behind the Surge in Energy Stocks

Hillary Clinton Says Prosecuting Individuals is Key to Wall Street Reform