Time Warner’s (TWX) 3Q17 operating margin grew to 29.6%, compared with 28.1% in 3Q16, driven by 6% YoY (year-over-year) growth in revenues.
Among all the iron ore miners as well as US steel stocks, Cleveland-Cliffs (CLF) has given the most negative return in the trailing three months, amounting to -19.5%.
China’s property sector is one of the most steel-intensive sectors, consuming approximately 50% of overall steel in the country.
Since China is the biggest consumer of seaborne iron ore (COMT), investors looking for clues about iron ore prices should track Chinese iron ore demand.
The volatility in the iron ore prices that characterized seaborne prices in 2017 is still continuing. While prices peaked at $95 per ton in February and hit a bottom of $53 per ton in July, they’ve been in the stable range of $63–$68 per ton lately.
Steel prices are the major driver of steelmakers’ earnings and revenues. So it’s important for steel investors and Cleveland-Cliffs (CLF) investors to track the trend in steel prices.
Demand for the product in any sector is the driving force behind the production growth and outlook. Similarly, in the US steel sector, demand for steel drives the revenues for US steelmakers’ (SLX) revenue.
US steel production (SPY)(SPX) is the major revenue driver for US steelmakers (X). This data point is released every month by the World Steel Association (or WSA).
The US (DIA)(DOW) iron ore segment contributes to most of Cleveland-Cliffs’ (CLF) revenues. Domestic US steelmakers are the main customers for this segment’s iron ore pellets.
To boost its digital ad business and its DTC (direct-to-consumer) model, Time Warner struck a deal with Snapchat in June 2017 to create original shows.
To boost its TV licensing business and stay competitive, Time Warner (TWX) continues to enrich its content lineups.
In 3Q17, Time Warner’s (TWX) Turner segment reported advertising revenues of $963 million, which was 3.3% lower YoY (year-over-year).
To counter the threats arising from Marvel’s (DIS) popular Avenger movies, Time Warner released its much-awaited Justice League in November 2017, this year.
Leading media conglomerate Time Warner (TWX) continues to enhance shareholder wealth through regular dividend payments.
The US steel sector (SLX) has seen its fortunes reverse in 2017 after the initial euphoria from the “Trump trade.”
To remain competitive in the OTT space and to expand its distribution source, Time Warner continues to drive its DTC (direct-to-consumer) business model.
Time Warner’s Turner segment, which includes networks like TNT, Turner Sports, Cartoon Network, and CNN, reported ~$2.8 billion in revenues—6.1% higher YoY.
In 3Q17, Time Warner’s theatrical products unit, which is part of its Warner Bros segment, reported $1.69 billion in revenues—up 5.6% YoY (year-over-year).
Time Warner’s HBO segment reported record quarterly revenue growth (for the past 13 years) in 3Q17, driven by 12.4% YoY growth in subscription revenues.
Time Warner’s home video and electronic delivery business, which is part of its Warner Bros Segment, continues to drive its theatrical product revenues.