Arctic Cat Inc. posted record quarterly earnings Thursday but failed to mollify investors who punished the ATV and snowmobile maker for missing analysts' revenue estimates.

The stock sank more than $4 a share in early morning trading Thursday and closed at $37.01, down $3.95. The decline was a bit of a disconnect with what company officials described as a "record" quarter.

After years of reorganizing and a year of impressive ATV growth, officials of the Plymouth-based manufacturer said they are benefiting from a profit growth strategy that includes fresh international markets, new products and factory cost controls.

Fiscal second-quarter earnings jumped 17 percent to a record $25 million, or $1.80 a share. Sales rose 12 percent to $229 million for the quarter. Earnings beat analysts' consensus expectations by a penny a share, but revenue missed analyst estimates by $3 million.

Arctic Cat CEO Claude Jordan told analysts during a conference call that he was "very pleased to report record earnings on double-digit sales gains in the fiscal 2013 second quarter on top of a strong quarter last year."

He added that "We continue to expect the entire industry to grow into the low single digits."

Second-quarter revenue growth was helped by a 19 percent jump in ATV sales to $69.7 million, compared with $58.8 million a year ago. The company benefited from higher demand for side-by-side Wildcat ATVs and the introduction of five new "price-valued" ATVs and three new packages of feature options. ATV sales are now expected to grow 36 to 41 percent for the full year, CFO Timothy Delmore told analysts, noting that the original forecast was for just 22 percent.

Second-quarter snowmobile sales rose 12 percent to $128.6 million from $114.7 million a year ago with the help of new product introductions and stronger sales in Russia, Norway and Sweden.

Total sales of the parts, garments and accessories division fell 2 percent during the quarter to $30.8 million, as demand for snow garments fell.

Dee DePass • 612-673-7725