What happened

Shares of ATV and motorcycle manufacturer Polaris Inc. (NYSE:PII) fell as much as 17% in trading Tuesday, after the company reported fourth-quarter 2017 results and guidance for 2018. It wasn't fourth-quarter performance that displeased investors, though; it was revenue guidance that left something to be desired. As of 3:10 p.m. EST, shares were down 13.5% on the day.

So what

Fourth-quarter revenue of $1.43 billion easily topped the $1.36 billion analysts were expecting. And net income of $31 million, or $1.47 per share on an adjusted basis, was in line with expectations.

ATVs on a muddy road

Image source: Getty Images.

What got a little dicier was guidance. Earnings guidance of $6.00 to $6.20 per share put the midpoint above the $6.03 analysts were expecting for the year. But guidance for revenue growth of 3% to 5% fell well below the 9% growth mark analysts were expecting. At a time when investors are concerned that we're past peak demand for discretionary purchases like motorcycles and ATVs, there was concern that revenue isn't going to be higher.

Now what

Polaris might not be hitting Wall Street's expectations, but it's expecting to grow revenue, and profitability is expected to be strong as well. In fact, if earnings guidance was higher than expected and revenue guidance was lower than expected, it implies that Polaris will generate stronger margins than analysts were modeling. I don't think this is an earnings report to be worried about, and think today's dip may be a good buying opportunity for long-term investors.

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.