Interactive Brokers (IBKR) reported fourth quarter earnings that came in far below analysts estimates. Interactive Brokers reported a profit of 7 cents per share in the fiscal fourth quarter, which was down 63% from the same quarter last year. Analysts were expecting Interactive Brokers to earn 15 cents per share in the fourth quarter. Net revenue in the quarter came in at $249.9 million, versus analysts estimates of $317 million in revenue. Higher operating expenses was the biggest problem in the fourth quarter. These expenses hurt the company’s bottom line significantly. Total non-interest expenses in the fourth quarter were up 39.9% from the same quarter last year. This was largely due to significantly higher general and administrative expenses.

Once again it was the market making segment that was weak, while the electronic brokerage business for Interactive Brokers was strong. Revenue in the market making segment fell nearly 27% from a year ago. Net revenue jumped by 22.9% in the electronic brokerage segment.

Interactive Brokers also reported full year 2013 results. The company earned 73 cents per share in the fiscal year 2013, compared to an earnings figure of $1.13 per share in 2012. Total DARTs increased by 18% from 2012 to a level of 486,000 in 2013. Customer accounts increased 14% in 2013 to 239,000.

While this report was clearly a disappointment based on expectations, shares of IBKR fell less than one percent in Wednesday’s trading.

For the full press release from Interactive Brokers with fourth quarter and 2013 earnings results click here.

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