Earnings season is officially underway after getting started this past week. Coming up this week, a number of stocks are set to report their numbers and give investors an early look into corporate profits for the third quarter of the calendar year.
Although there are numerous companies reporting this week, here are five of the major companies to pay attention to that could set the tone for the rest of the earnings season.
Rogers Communications
Rogers reports earnings on October 23, before the market opens and will kick off the earnings for the telecom sector.
A lot has been going on in the telecom space lately, and investors will be waiting to get an idea of how things are shaping up. Companies continue to build their fibre infrastructure to create as large a footprint as possible.
On the wireless side, investors will be watching to see the number of monthly subscriptions it added as well as its average monthly bill.
With new competition coming on the market in Canada, investors have been anticipating shrinking average monthly bills, so this will be a good chance to see how that’s playing out.
Husky Energy
Husky is reporting earnings on October 24, and is the first of the integrated energy companies to report numbers this fall.
Husky, although it has some quality assets and future growth projects, has mainly lagged behind a number of its peers the last few years, so it will be interesting to see how the company has addressed this and what it’s doing to improve its position.
It would also be great to see a continued increase in its margin, which should directly translate to its cash flow numbers.
Agnico Eagle Mines
Agnico reports on October 23, after the market closes. It will be interesting to see how it has performed, especially as the price of gold has rallied.
It’s had its fair share of trouble in recent years at some of its northern Canadian mines, so getting an update on that will be key.
It will also be paramount to get an update on its plan for the Canadian Malartic mine, which it paid a heavy premium for.
Canadian National Railway
Canadian National reports earnings October 22 after the closing bell. Railroads have always been one of the best businesses, especially from a cash flow standpoint, and CNR may be the best of the best.
In the past, it’s had its operations impacted by a severe reduction in demand for its services during market downturns, so CNR has been working to have less exposure to GDP-sensitive industries.
Looking at the number that railroads report gives us a lot of insight into how the economy is doing, so continued strong numbers from CNR will be a big positive overall for the entire North American economy.
Winpak
Winpak reports earnings on October 24 that will be heavily watched by investors. Winpak’s a manufacturing company that predominantly makes packaging for food.
It has been one of the top performers since the last recession but has mostly treaded water for the last few years.
It will be interesting to see what progress Winpak has made this past quarter, as it struggles to put up the growth numbers it did in the first half of the decade.
Since it’s a manufacturing company, its operations can tell us a lot about the manufacturing sector and some of the challenges it may be facing.
Bottom line
Watching these companies report as well as the other companies reporting this week could give an idea into what trends are developing and what correlations we may be seeing.
Seeing how the market reacts can also help us to draw conclusions into the sentiment of investors. It could also show that we are closer to a recession than we think or, conversely, that the economy is still rock solid.
Watching for any clues or patterns though will be paramount to determine what may happen next, both in Canada and globally.
