NEW YORK (TheStreet) --United Parcel Service (UPS) - Get Report released its 2016 second quarter earnings results before the market opened on Friday. The package delivery company's earnings were in line with analysts' expectations, while revenue topped estimates.
UPS earnings came in at $1.43 per share on revenue of $14.63 billion, just above the $14.62 billion analysts had forecast. Earnings were boosted by online shopping.
Company CFO Richard Peretz joined Bloomberg TV's "Bloomberg Markets" this morning to discuss UPS' latest earnings and what to expect going forward especially with all of the uncertainty surrounding trade.
"When you think about the forecast side of it, we tend to look at some of the forecast and some things have soften but other things have also improved," Peretz said.
The CFO explained that electric sales numbers have continually been forecast to "go a little heavier," while the industrial side has come down.
Bloomberg TV anchor Vonnie Quinn asked Peretz if the company is going to continue with its planned investments in Europe, even given the outcome of the Brexit vote.
"The short answer is absolutely," Peretz said. "The U.K. is an important part of our network and we also know that in the short term there was a slight softening of growth rates because of Brexit and the initial forecast."
The company can't know for sure what will happen going forward but noted that UPS operates in many countries around the world and each has its own rule for how to cross borders.
UPS has committed about $5 billion in Europe and the U.K. in investments over the next five years and plans to continue those.
Shares of UPS are down by 0.52% to $108.17 on Friday morning.
Separately, TheStreet Ratings has set a "buy" rating and a score of A on UPS stock. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that TheStreet Ratings covers.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and increase in net income. TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: UPS