Hagerty (HGTY) stock experienced a sharp decline of 6.09% intraday on Tuesday, as the company's FY25 revenue guidance fell short of analysts' expectations.

The insurance provider for classic cars and collector vehicles projected FY25 revenue in the range of $1.344 billion to $1.356 billion, missing the consensus estimate of $1.36 billion. Despite strong anticipated growth in written premiums of 13%-14%, the lower-than-expected top-line guidance seems to have weighed on investor sentiment.

Additionally, Hagerty reported mixed results for the fourth quarter of fiscal year 2024. While the company posted revenue of $291.7 million and adjusted EBITDA of $19.9 million, the adjusted EPS of $0.02 fell short of analyst expectations. Hagerty also highlighted an estimated $11 million pre-tax impact from the Southern California wildfires during Q1 2025, which could put further pressure on its financial performance.