Earnings Season Is Here: 2 Canadian Stocks You Should Keep an Eye on This Month

The two Canadian stocks I’m watching this month ahead of their earnings.

Key Points
  • Canadian National Railway's upcoming earnings report on October 30 is anticipated amid record grain shipments and improved guidance, although higher fuel costs could impact profitability.
  • Teck Resources will release its third-quarter results on October 29, with a focus on capitalizing on strong copper prices and operational improvements, despite potential commodity-price volatility and execution risks.

Another earnings season is underway, with several Canadian companies set to report their third-quarter results in the coming days. These announcements could influence share prices as investors assess financial performance, growth prospects, and management guidance. As October draws to a close, let’s look at two Canadian stocks ahead of their upcoming earnings releases.

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Canadian National Railway

Canadian National Railway (TSX: CNR) operates an extensive North American rail network, moving more than 300 million tons of commodities, manufactured goods, and other products annually while providing integrated transportation services to customers across North America. Following a solid first half, the company has delivered a year-to-date total shareholder return of 25.4%.

CNR also raised its full-year guidance after a strong first half. Management now expects revenue ton-miles (RTMs) to rise in the low single digits this year, while adjusted diluted earnings per share (EPS) could grow in the mid-to-high single digits. The company plans to invest approximately $2.8 billion in capital expenditures this year to strengthen network safety, expand capacity, and improve operational resilience. Management also anticipates stronger free cash flow conversion as the year progresses.

CNR’s third-quarter operating performance offers further grounds for optimism. Earlier this month, the railway reported record grain shipments of 7.94 million metric tonnes (MMT), surpassing its previous record of 7.48 MMT set in 2020. Strong customer demand, close coordination across the grain supply chain, and consistent execution helped drive this achievement. Looking ahead, rising oil and natural gas liquids (NGL) production across North America, along with increased automotive imports, could support further freight-volume growth.

However, higher fuel costs could weigh on profitability and offset some of these gains. Nevertheless, CNR’s improved guidance, record grain volumes, and potential growth in other freight categories make its upcoming results worth watching. The company is scheduled to release its third-quarter earnings before the market opens on October 30.

Teck Resources

Teck Resources (TSX: TECK.B) is a Canadian mining company with copper and zinc operations across North and South America. Beyond its existing producing assets, the company has a strong pipeline of copper development projects that could support long-term production growth. The stock has gained more than 29% year-to-date, supported by solid first-half results and strengthening copper prices. Despite this rally, Teck Resources trades at relatively attractive forward sales and earnings multiples of 2.7 and 14, respectively.

Copper prices remain elevated amid tightening global supply, U.S. tariff uncertainty that has contributed to inventory dislocations, and robust structural demand driven by electrification and the expansion of artificial intelligence (AI) infrastructure. Against this backdrop, Teck is investing to strengthen its production capabilities, with planned capital expenditures of $2.87 billion to $3.48 billion this year. In parallel, the company continues to focus on improving asset utilization, increasing throughput, and enhancing recovery rates. If the company executes these initiatives well, they could support higher output, improve operating efficiency, and strengthen profitability.

With Teck scheduled to release its third-quarter results before the market opens on October 29, investors will watch closely for evidence that favourable copper-market conditions and operational improvements are translating into sustained financial growth. Strong earnings could further support the stock, although commodity-price volatility and project execution risks remain important considerations.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.

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