Diana Containerships (DCIX) Stock: Running For The Top On Earnings

Shipping Stocks TOPS DRYS SHIP DCIXDiana Containerships Inc (NASDAQ: DCIX) is having an overwhelmingly strong start to the trading session this morning after the company released its earnings for the first quarter of the fiscal 2018 year. The report proved to be overwhelmingly positive, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about:

  • What we saw from earnings;
  • what we’re seeing from DCIX as a result; and
  • what we’ll be watching for ahead.

DCIX Gains Big On Earnings

As mentioned above, Diana Containerships is having an incredibly strong start to the trading session this morning after reporting its financial results for the first quarter. Ultimately, the results showed incredible growth in both the top line and bottom line. Here’s what we saw from the report:

  • Net Loss – In terms of losses, while the company is not profitable quite yet, losses have shrunk dramatically. During the first quarter, DCIX reported a net loss in the amount of $3.9 million. That compares incredibly well to the $7.4 million net loss the company reported in the same quarter one year ago.
  • Revenue – Revenue also proved to be an overwhelmingly positive point for DCIX. During the quarter, the company generated revenue in the amount of $8.0 million. That figure actually proved to be more than double the $3.8 million in revenue that was reported in the first quarter of 2017. In the report, the company said that the increase was mainly the result of revenue generated through the improvement of the company’s fleet utilization and increased time charter rates.

What We’re Seeing From The Stock 

As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, while Diana Containerships isn’t quite profitable, it’s earnings report showed more than 100% year-over-year growth in revenue and a massive improvement on a year-over-year basis with regard to net losses. So, it’s no surprise that excited investors are sending the stock toward the top. At the moment (9:54), DCIX is trading at $2.63 per share after a gain of $0.99 per share (60.27%) thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on DCIX. In particular, we’re interested in following the company to see what it does to further increase revenue and improve its financial picture. Keep in mind that, while still operating at a loss, there’s a chance for dilutive or toxic funding. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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