Interactive Brokers (IBKR) reported earnings Tuesday after the close that were down sharply from a year ago. The online broker brought in revenue of $216 million, which was 30 percent lower than last year’s revenue of $304 million. Net income dropped 41 percent to a level of $6.6 million, or 14 cents per share. Analysts had expected revenue of $244 million and earnings per share of 13 cents from Interactive Brokers. Clearly, it was a big miss on the revenue number, but the online broker managed to beat by a penny on the bottom line.

The market making segment of Interactive Brokers lost $29 million in the first quarter of this year. That compares to a profit of $66 million in the same quarter a year ago. Currency translation and an extremely low level on the Volatility Index are largely responsible for the poor numbers from this area.

On the other side, electronic brokerage segment income before taxes increased 33 percent from a year ago. Total DARTs were actually up 9 percent from a year ago, which is better than Interactive Brokers’ peers have reported. Customer accounts grew 11 percent to 217,000 by the end of the quarter.

Interactive Brokers CEO Thomas Peterffy said in the conference call that the earnings results give a misleading picture of the growth that is occurring at the company. He pointed to the $111 million in earnings from the brokerage business, which was a record.

Though the headlines were bad surrounding this earnings report, the market seemed to take it in stride, suggesting the news might have been baked into the stock price. IBKR shares actually traded up 2.34% in the day immediately following this release.

For the full earnings release click here.

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