Diana Containerships Inc (NASDAQ: DCIX) is off to an overwhelmingly rough start to the trading session in the pre-market hours this morning, and for good reason. The company reported its financial results for the third quarter, showing a sharp year over year decline on just about all aspects of business. As you could imagine, the news upset investors, sending the stock tumbling down. Today, we’ll talk about the report, what we’re seeing from DCIX stock as a result, and what we’ll be watching for ahead.
DCIX Earnings Are Anything But Positive
As mentioned above, Diana Containerships is having an incredibly rough start to the trading session this morning after reporting its earnings for the third quarter. Here’s what we saw from the report:
- Net Loss – In terms of net loss, DCIX actually did pretty well. During the quarter, the company generated a net loss of $6.3 million, compared to a net loss of $8.7 million during the third quarter of 2017. The company said that the loss was mainly attributed to impairment charges for one vessel that came to $4.8 million. Net loss for the most recent nine months came to $52.5 million, showing a large growth in losses from the $20.4 million in the same period of 2017.
- Revenue – In terms of revenue, things didn’t go quite as well. The company said that time charger revenues came in at $5.2 million. That’s a stark decline from the $6.7 million reported in the same quarter one year ago. The company said that the revenue was down largely becuase of a shrinking fleet. Unfortunately, this offset the increased time charter rates and improvement in the shipping market conditions.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Diana Containerships, the news proved to be overwhelmingly negative. After all, investors want to see growth on earnings reports, and what they got from this one was anything but. So, it’s not surprising to see that the stock is falling in the market this morning. At the moment (9:19), DCIX is trading at $1.13 per share after a loss of $0.20 per share or 15.04% 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 seeing what the company does to take advantage of improving market conditions for the shipping sector and make up for the poor report that was released today. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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