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Harley-Davidson announced Q4 net income grew 9.7% to $252.4 million, or $0.97/share, beating the Street by a penny. Revenue increased 11.9% to $1.5 billion, beating analysts' average estimate of $1.44b. Full year net income was up 8.7% to $1.04b, or $3.93/share on revenue of $5.34b (+8.6% y-o-y), beating analysts' average estimate of $3.92/share on revenue of $5.75b. Wholesale shipments increased 8.6% on the year to 349,196 units with 92,848 units shipped in Q4 (+6% y-o-y). Harley-Davidson-HOG-1yr-chart-01-18-07Worldwide retail sales in Q4 increased 6.4% y-o-y and full year sales rose 8.5%. Double-digit increases were achieved in international markets. However, retail sales in the U.S. declined 0.3% in Q4, but were up 5.9% on the year. Harley said it expects to ship between 82k to 84k units in Q1 versus 79,506 units last Q1. It expects EPS growth between 11% to 17% each year through 2009. Its shares lost 2.6% yesterday to close at $70.95, perhaps due to analyst focus on quarterly sales weakness in the U.S.

• Sources: Earnings press release, Bloomberg, MarketWatch
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• Potentially impacted stocks and ETFs: Harley-Davidson (NYSE:HOG)

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Source: Harley-Davidson Beats Street On Strong Int'l Growth, But Stock Drops