Why Harley-Davidson Stock Declined 7% Tuesday Morning

Shares of Harley-Davidson (NYSE: HOG), dropped 7% lower early Tuesday morning, before recovering some losses, as the markets digested the motorcycle maker's disappointing fourth-quarter results.

Harley-Davidson's revenue declined 8.5% to $874.1 million in the fourth quarter, compared to the prior year, which failed to meet analysts' estimates of $922 million. Adjusted earnings checked in at $0.20 per share, which topped the prior year's $0.17 per share result but still failed to meet analysts' estimates of $0.24 per share. Harley-Davidson's shipments fell 7% to 40,454 units during the fourth quarter, slightly missing consensus estimates of 41,700 units. "Our performance in Q4 and the full year was in line with our expectations and indicative of increased business stability driven by the tremendous efforts of our employees and dealers," said Matt Levatich, president and chief executive officer of Harley-Davidson, in a press release.

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Source Fool.com