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After the closing bell yesterday, software giant Oracle (ORCL - Free Report) reported solid second-quarter fiscal 2023 results, beating both revenue and earnings estimates.
Given this, ETFs with the highest allocation to this software giant are in focus for the coming weeks. These include iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , Invesco BuyBack Achievers ETF (PKW - Free Report) , First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , and First Trust Cloud Computing ETF (SKYY - Free Report) .
Oracle Earnings in Focus
Earnings per share came in at $1.21, which outpaced the Zacks Consensus Estimate by 4 cents. Revenues rose 18% year over year to $12.28 billion and topped the estimated $12 billion. Strong revenue growth was powered by the infrastructure and applications cloud businesses that grew 59% and 45%, respectively. Cloud revenue jumped 43% to $3.8 billion in the fiscal second quarter (see: all the Technology ETFs here).
Revenues from the two strategic cloud applications businesses, namely Fusion and NetSuite Cloud ERP applications, grew 23% and 25%, respectively, during the quarter. Oracle Fusion is the world's biggest cloud ERP business, while Oracle NetSuite is the second-biggest cloud ERP business.
For the ongoing quarter, Oracle expects revenues to grow 17-19% and adjusted earnings per share will be as much as $1.21. The Zacks Consensus Estimate is pegged at 16.1% for revenue growth and earnings per share stands at $1.17.
Oracle currently has a Zacks Rank #3 (Hold) and a VGM Score of A. It belongs to a top-ranked Zacks Industry (top 31%).
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 114 securities, with Oracle taking the fourth spot at 7.4% of the total assets.
iShares Expanded Tech-Software Sector ETF is popular with an AUM of $4.3 billion. Volume is good as it exchanges 1.3 million shares a day. IGV charges 40 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High-risk outlook (read: ETF Winners Amid Tech's Roller-Coaster Ride in a Year).
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 top position at a 5.6% allocation.
Invesco BuyBack Achievers ETF accumulated $1.8 billion in its asset base and trades in an average daily volume of 157,000 shares. PKW charges 61 bps of annual fees.
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers in the technology sector by tracking the Nasdaq Technology Dividend Index. TDIV holds about 94 securities in its basket. Of these firms, ORCL occupies the sixth position, making up 4.3% 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 109,000 shares per day. The ETF charges 50 bps in 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 66 stocks in the basket, Oracle takes the second position at 4.4% (read: Time for Cloud ETFs Following Amazon's Recent Hiring Move?).
First Trust Cloud Computing ETF is able to manage $2.8 billion in its asset base while seeing a good volume of about 401,000 shares a day. SKYY charges 60 bps as annual fees and has a Zacks ETF Rank #1 with a Medium-risk outlook.
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ETFs in Focus Post Oracle's Solid Q2 Earnings
After the closing bell yesterday, software giant Oracle (ORCL - Free Report) reported solid second-quarter fiscal 2023 results, beating both revenue and earnings estimates.
Given this, ETFs with the highest allocation to this software giant are in focus for the coming weeks. These include iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , Invesco BuyBack Achievers ETF (PKW - Free Report) , First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , and First Trust Cloud Computing ETF (SKYY - Free Report) .
Oracle Earnings in Focus
Earnings per share came in at $1.21, which outpaced the Zacks Consensus Estimate by 4 cents. Revenues rose 18% year over year to $12.28 billion and topped the estimated $12 billion. Strong revenue growth was powered by the infrastructure and applications cloud businesses that grew 59% and 45%, respectively. Cloud revenue jumped 43% to $3.8 billion in the fiscal second quarter (see: all the Technology ETFs here).
Revenues from the two strategic cloud applications businesses, namely Fusion and NetSuite Cloud ERP applications, grew 23% and 25%, respectively, during the quarter. Oracle Fusion is the world's biggest cloud ERP business, while Oracle NetSuite is the second-biggest cloud ERP business.
For the ongoing quarter, Oracle expects revenues to grow 17-19% and adjusted earnings per share will be as much as $1.21. The Zacks Consensus Estimate is pegged at 16.1% for revenue growth and earnings per share stands at $1.17.
Oracle currently has a Zacks Rank #3 (Hold) and a VGM Score of A. It belongs to a top-ranked Zacks Industry (top 31%).
ETFs in Focus
Let’s delve into each ETF below:
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 114 securities, with Oracle taking the fourth spot at 7.4% of the total assets.
iShares Expanded Tech-Software Sector ETF is popular with an AUM of $4.3 billion. Volume is good as it exchanges 1.3 million shares a day. IGV charges 40 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High-risk outlook (read: ETF Winners Amid Tech's Roller-Coaster Ride in a Year).
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 top position at a 5.6% allocation.
Invesco BuyBack Achievers ETF accumulated $1.8 billion in its asset base and trades in an average daily volume of 157,000 shares. PKW charges 61 bps of annual fees.
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers in the technology sector by tracking the Nasdaq Technology Dividend Index. TDIV holds about 94 securities in its basket. Of these firms, ORCL occupies the sixth position, making up 4.3% 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 109,000 shares per day. The ETF charges 50 bps in 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 66 stocks in the basket, Oracle takes the second position at 4.4% (read: Time for Cloud ETFs Following Amazon's Recent Hiring Move?).
First Trust Cloud Computing ETF is able to manage $2.8 billion in its asset base while seeing a good volume of about 401,000 shares a day. SKYY charges 60 bps as annual fees and has a Zacks ETF Rank #1 with a Medium-risk outlook.