Bloomberg News

Online stock trading platform E*Trade Financial Corp.  (ETFC - Get Report) saw its own stock price take a hit Friday after missing the mark on Wall Street's revenue expectations.

E*Trade's stock price fell 3.5% to $47.77 at the close of Friday's trading, following the company's release of its fourth-quarter earnings report.

E*Trade reported net fourth quarter revenue of $735 million, up 15.4% over the same quarter a year ago. Still, they fell short of Zacks Consensus Estimate of $747.4 million.

Expenses also jumped 4.9% from a year ago, hitting $382 million, driven by an increase in employee compensation and benefits, debt servicing costs, as well as marketing and advertising expenses, Zacks noted.

Still, E*Trade beat analyst expectations with earnings of $1.06 per share, above Zacks estimate of $1.05.

The company also reported 1.3 million net new brokerage accounts in 2018. Roughly 204,000 accounts represented new, organic growth, excluding acquisitions, E*Trade said.

"This was a year of records for E*Trade," said CEO Karl Roessner. "We generated our highest net revenue, operating margin, and earnings, while capitalizing on an unprecedented operating environment to produce record organic business growth."

Despite revenue missing expectations, Zacks gave E*Trade a qualified thumbs up.

"E*Trade's trading performance and credit quality have displayed continued improvement," Zacks noted. "Though we remain cautious about the competitive pressure and macro headwinds, we anticipate the company's focus on core operations, controlled expenses and strategic initiatives to result in improved profitability."