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After the closing bell yesterday, software giant Oracle (ORCL - Free Report) reported mixed first-quarter fiscal 2023 results. ORCL’s earnings missed the Zacks Consensus Estimate, while revenues came in line.
Following the mixed results, ETFs with the highest allocation to this software giant are in focus for the coming weeks. These include First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , Invesco BuyBack Achievers ETF (PKW - Free Report) and First Trust Cloud Computing ETF (SKYY - Free Report) .
Oracle Earnings in Focus
Earnings per share came in at $1.03, missing the Zacks Consensus Estimate of $1.07, but the same was on par with the year-ago quarter’s bottom line. Revenues rose 18% year over year to $11.45 billion, matching the estimates. Growth was attributable to the software maker’s transition to cloud computing and its acquisition of the health records provider Cerner (see: all the Technology ETFs here).
Revenues from the two strategic cloud applications businesses, namely Fusion and NetSuite Cloud ERP applications, grew 33% and 27%, respectively, during the quarter. Oracle Fusion is the world's biggest cloud ERP business, while Oracle NetSuite is the world's second-biggest cloud ERP business.
With hybrid work gaining traction worldwide, Oracle is constantly looking to bolster its cloud offerings to catch up with the bigger rivals Microsoft’s (MSFT - Free Report) Azure and Amazon.com (AMZN - Free Report) Web Services.
For the ongoing quarter, Oracle expects revenues to grow 15%-17% and adjusted earnings in the range of $1.16-$1.20 per share. The Zacks Consensus Estimate is pegged at 17.2% for revenue growth and stands at $1.26 for earnings per share.
Oracle currently has a Zacks Rank #2 (Buy) and a Momentum Score of A. It belongs to a bottom-ranked Zacks Industry (bottom 38%).
ETFs in Focus
Let’s delve into each ETF below:
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
First Trust NASDAQ Technology Dividend Index Fund provides exposure to the dividend payers in the technology sector by tracking the Nasdaq Technology Dividend Index. TDIV holds about 90 securities in its basket. Of these firms, ORCL occupies the seventh position, making up 7.4% of the assets.
First Trust NASDAQ Technology Dividend Index Fund amassed $1.6 billion in its asset base and trades in a moderate volume of about 116,000 shares per day. The ETF charges 50 bps in annual fees (read: Dividend Growth Picks Momentum: ETFs to Gain).
iShares Expanded Tech-Software Sector ETF provides exposure to software companies in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. The fund holds a basket of 118 securities, with Oracle taking the fifth spot at 6.5% of the total assets.
iShares Expanded Tech-Software Sector ETF is popular with an AUM of $4 billion. Volume is good as it exchanges 942,000 shares a day. IGV charges 40 bps in annual fees and has a Zacks ETF Rank #2 with a High-risk outlook.
Invesco BuyBack Achievers ETF follows the NASDAQ US BuyBack Achievers Index, which comprises U.S. securities issued by corporations that led to a net reduction in shares outstanding of 5% or more in the trailing 12 months. PKW holds a basket of 153 stocks, with Oracle taking the fourth position at 5% allocation.
Invesco BuyBack Achievers ETF accumulated $1.1 billion in its asset base and trades in an average daily volume of 37,000 shares. PKW charges 61 bps of annual fees.
First Trust Cloud Computing ETF provides exposure to companies involved in the cloud computing industry by tracking the ISE CTA Cloud Computing Index. Holding about 70 stocks in the basket, Oracle takes the fourth position at 3.5% (read: A Detailed Guide to Cloud Computing ETFs).
First Trust Cloud Computing ETF could manage to collect $3.5 billion in its asset base, while seeing a good volume of about 359,000 shares a day. SKYY charges 6 bps as annual fees and has a Zacks ETF Rank #2 with a Medium-risk outlook.
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ETFs in Focus Post Oracle Earnings
After the closing bell yesterday, software giant Oracle (ORCL - Free Report) reported mixed first-quarter fiscal 2023 results. ORCL’s earnings missed the Zacks Consensus Estimate, while revenues came in line.
Following the mixed results, ETFs with the highest allocation to this software giant are in focus for the coming weeks. These include First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , Invesco BuyBack Achievers ETF (PKW - Free Report) and First Trust Cloud Computing ETF (SKYY - Free Report) .
Oracle Earnings in Focus
Earnings per share came in at $1.03, missing the Zacks Consensus Estimate of $1.07, but the same was on par with the year-ago quarter’s bottom line. Revenues rose 18% year over year to $11.45 billion, matching the estimates. Growth was attributable to the software maker’s transition to cloud computing and its acquisition of the health records provider Cerner (see: all the Technology ETFs here).
Revenues from the two strategic cloud applications businesses, namely Fusion and NetSuite Cloud ERP applications, grew 33% and 27%, respectively, during the quarter. Oracle Fusion is the world's biggest cloud ERP business, while Oracle NetSuite is the world's second-biggest cloud ERP business.
With hybrid work gaining traction worldwide, Oracle is constantly looking to bolster its cloud offerings to catch up with the bigger rivals Microsoft’s (MSFT - Free Report) Azure and Amazon.com (AMZN - Free Report) Web Services.
For the ongoing quarter, Oracle expects revenues to grow 15%-17% and adjusted earnings in the range of $1.16-$1.20 per share. The Zacks Consensus Estimate is pegged at 17.2% for revenue growth and stands at $1.26 for earnings per share.
Oracle currently has a Zacks Rank #2 (Buy) and a Momentum Score of A. It belongs to a bottom-ranked Zacks Industry (bottom 38%).
ETFs in Focus
Let’s delve into each ETF below:
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
First Trust NASDAQ Technology Dividend Index Fund provides exposure to the dividend payers in the technology sector by tracking the Nasdaq Technology Dividend Index. TDIV holds about 90 securities in its basket. Of these firms, ORCL occupies the seventh position, making up 7.4% of the assets.
First Trust NASDAQ Technology Dividend Index Fund amassed $1.6 billion in its asset base and trades in a moderate volume of about 116,000 shares per day. The ETF charges 50 bps in annual fees (read: Dividend Growth Picks Momentum: ETFs to Gain).
iShares Expanded Tech-Software Sector ETF (IGV - Free Report)
iShares Expanded Tech-Software Sector ETF provides exposure to software companies in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. The fund holds a basket of 118 securities, with Oracle taking the fifth spot at 6.5% of the total assets.
iShares Expanded Tech-Software Sector ETF is popular with an AUM of $4 billion. Volume is good as it exchanges 942,000 shares a day. IGV charges 40 bps in annual fees and has a Zacks ETF Rank #2 with a High-risk outlook.
Invesco BuyBack Achievers ETF (PKW - Free Report)
Invesco BuyBack Achievers ETF follows the NASDAQ US BuyBack Achievers Index, which comprises U.S. securities issued by corporations that led to a net reduction in shares outstanding of 5% or more in the trailing 12 months. PKW holds a basket of 153 stocks, with Oracle taking the fourth position at 5% allocation.
Invesco BuyBack Achievers ETF accumulated $1.1 billion in its asset base and trades in an average daily volume of 37,000 shares. PKW charges 61 bps of annual fees.
First Trust Cloud Computing ETF (SKYY - Free Report)
First Trust Cloud Computing ETF provides exposure to companies involved in the cloud computing industry by tracking the ISE CTA Cloud Computing Index. Holding about 70 stocks in the basket, Oracle takes the fourth position at 3.5% (read: A Detailed Guide to Cloud Computing ETFs).
First Trust Cloud Computing ETF could manage to collect $3.5 billion in its asset base, while seeing a good volume of about 359,000 shares a day. SKYY charges 6 bps as annual fees and has a Zacks ETF Rank #2 with a Medium-risk outlook.