These TSX stocks could see big moves on Thursday

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Canada's second-quarter earnings season is kicking into gear, with results from two blue-chip companies shedding light on whether lagging Canadian stocks are set to close the gap with their international peers.

Canadian Pacific Railway Ltd. reported upbeat financial results after markets closed on Wednesday, exceeding analysts' estimates by 2.2 per cent.

CP said that its quarterly profit rose 52 per cent to $3.27 a share, or $2.77 a share after some one-time adjustments were made.

Analysts had been expecting an adjusted profit of $2.71 a share.

Rogers Communications Inc. is set to report its second quarter results on Thursday morning, marking the first report since Joe Natale took over as chief executive officer from Guy Laurence.

Analysts expect the wireless and cable giant to report a profit of 88 cents a share, or 93.7 cents a share after adjusting for some extraordinary items. Rogers has topped estimates in its last two quarters, though – and by more than 12 per cent last quarter.

But analysts will be paying close attention to measures beyond profit. So-called wireless churn, for example, will provide a clear indication of how Rogers is managing to hold onto existing smartphone subscribers rather than letting them drift to rival wireless providers such as BCE Inc. and Telus Corp.

Mr. Natale believes he can lower customer turnover to below 1 per cent, or in line with churn at Telus, down from 1.1 per cent last quarter.

The number of new wireless customers will also be a key focal point. Analysts expect Rogers added 74,000 new customers in the second quarter.

Investors should also keep an eye on Exchange Income Corp. The Winnipeg-based company has been the target of short-seller Marc Cohodes – the same investor who has gone after Home Capital Group Inc. – but it had complained that Mr. Cohodes made public his concerns during a quiet period for the company, when it could not respond.

As a result, Exchange Income moved up its second-quarter report from August to Wednesday evening. The results easily surpassed analyst forecasts; adjusted EPS was 77 cents versus expectations of 62 cents, with revenue of $273.1-million topping forecasts of $242.4-million.

Elsewhere, Hydro One Ltd. investors will be reacting to news after the bell Wednesday that the utility has signed a friendly deal to acquire U.S. company Avista Corp. for $6.7-billion (Canadian).