KLA-Tencor $KLAC stock has dropped 6.5% in the last day on the news that it missed it fourth-quarter profit targets. Although it missed its profit targets the company did show a rise in revenue.
“Adjusted profit fell to 80 cents a share last quarter from 82 cents during the same period last year. Revenue rose to $734 million from $720 million. Analysts had expected adjusted profit of 83 cents a share on revenue of $732 million “
Analyst Atif Malik believes “that volatile quarterly spending swings due to customer concentration and project timing are not indicative of long-term earnings power of the company.” The weak performance is not an indicator of long-term success and thus this may be a buying opportunity of an undervalued stock.