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ETFs to Tap as Cisco Beats on Q2 Earnings, Raises View
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Tech prime Cisco Systems (CSCO - Free Report) cheered investors with second-quarter fiscal 2023 results. The networking giant beat on both earnings and revenues, and offered encouraging revenue guidance for the current quarter. Cisco also raised its fiscal-year revenue outlook.
Cisco shares climbed 12% in after-market hours yesterday and gained 4% at the time of writing in pre-market hours today. The smooth trading is likely to continue in ETFs, with the largest allocation going to this networking giant. These include iShares U.S. Telecommunications ETF (IYZ - Free Report) , iShares North American Tech-Multimedia Networking ETF , Pacer Data and Digital Revolution ETF (TRFK - Free Report) , First Trust Nasdaq Cybersecurity ETF (CIBR - Free Report) and Invesco Dynamic Networking ETF .
Cisco Earnings in Focus
Earnings of 88 cents per share outpaced the Zacks Consensus Estimate of 86 cents and improved 5% from the year-ago earnings. Revenues grew 7% year over year to $13.6 billion and edged past the consensus mark of $13.43 billion. The robust performance was driven by better-than-expected demand for tech infrastructure and indicated that the company might finally be exiting a difficult period related to supply-chain challenges (see: all the Technology ETFs here).
For the fiscal third quarter, Cisco expects revenues to grow 11-13% and earnings of 96-98 cents per share. The networking giant expects fiscal 2023 to be its best growth year in at least a decade. It lifted revenue growth guidance to 9-10.5% from the previous projection of 4.5-6.5% and earnings per share guidance to $3.73-$3.78 from $3.51-$3.58.
iShares U.S. Telecommunications ETF offers exposure to U.S. companies that provide telephone and Internet products, services and technologies. It follows the Russell 1000 Telecommunications RIC 22.5/45 Capped Index, holding 21 stocks in its basket. Cisco takes the top position at 16.4% of assets.
iShares U.S. Telecommunications ETF has AUM of $356.2 million and trades in an average daily volume of 767,000 shares. IYZ charges 39 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
iShares North American Tech-Multimedia Networking ETF
iShares North American Tech-Multimedia Networking ETF provides exposure to telecom equipment, data networking and wireless equipment companies by tracking the S&P North American Technology-Multimedia Networking Index. iShares North American Tech-Multimedia Networking ETF has 22 securities in its basket, with Cisco taking the third spot holding an 8.5% allocation.
iShares North American Tech-Multimedia Networking ETF has accumulated $356.2 million in its asset base and sees a good volume of around 767,000 shares a day. IGN charges 39 bps in annual fees and carries a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
Pacer Data and Digital Revolution ETF aims to offer investors exposure to the globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 82 stocks in its basket. Out of these, Cisco is the third firm, accounting for an 8.4% share.
Pacer Data and Digital Revolution ETF debuted in the space in June last year and has accumulated $1 million in its asset base. It has an expense ratio of 0.60% and trades in a meager volume of under 500 shares per day on average (read: Intel Plunges on Earnings Miss, Weak Guidance: ETFs in Focus).
First Trust Nasdaq Cybersecurity ETF follows the Nasdaq CTA Cybersecurity Index, which measures the performance of companies engaged in the cybersecurity segment of the technology and industrial sectors. The index includes companies primarily involved in the building, implementation and management of security protocols applied to private and public networks, computers and mobile devices to provide protection for the integrity of data and network operations. First Trust Nasdaq Cybersecurity ETF holds 36 stocks in its basket, with Cisco taking the fifth spot at 5.6%.
First Trust Nasdaq Cybersecurity ETF has accumulated $4.8 billion in its asset base. CIBR charges 60 bps in annual fees and trades in an average daily volume of about 700,000 shares.
Invesco Dynamic Networking ETF
Invesco Dynamic Networking ETF offers exposure to the companies that are principally engaged in the development, manufacture, sale or distribution of products, services or technologies that support the flow of electronic information, including voice, data, images and commercial transactions. It follows the Dynamic Networking Intellidex Index, holding 31 securities in its basket. Of these, Cisco is the seventh firm, accounting for 5.1% share (read: Best Tech ETFs In Nasdaq's Worst Week Since December).
Invesco Dynamic Networking ETF is relatively unpopular and illiquid in the broad technology space, with AUM of $30 million and an average daily volume of about 4,000 shares. It charges 63 bps in annual fees and has a Zacks ETF Rank #1 with a High risk outlook.
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ETFs to Tap as Cisco Beats on Q2 Earnings, Raises View
Tech prime Cisco Systems (CSCO - Free Report) cheered investors with second-quarter fiscal 2023 results. The networking giant beat on both earnings and revenues, and offered encouraging revenue guidance for the current quarter. Cisco also raised its fiscal-year revenue outlook.
Cisco shares climbed 12% in after-market hours yesterday and gained 4% at the time of writing in pre-market hours today. The smooth trading is likely to continue in ETFs, with the largest allocation going to this networking giant. These include iShares U.S. Telecommunications ETF (IYZ - Free Report) , iShares North American Tech-Multimedia Networking ETF , Pacer Data and Digital Revolution ETF (TRFK - Free Report) , First Trust Nasdaq Cybersecurity ETF (CIBR - Free Report) and Invesco Dynamic Networking ETF .
Cisco Earnings in Focus
Earnings of 88 cents per share outpaced the Zacks Consensus Estimate of 86 cents and improved 5% from the year-ago earnings. Revenues grew 7% year over year to $13.6 billion and edged past the consensus mark of $13.43 billion. The robust performance was driven by better-than-expected demand for tech infrastructure and indicated that the company might finally be exiting a difficult period related to supply-chain challenges (see: all the Technology ETFs here).
For the fiscal third quarter, Cisco expects revenues to grow 11-13% and earnings of 96-98 cents per share. The networking giant expects fiscal 2023 to be its best growth year in at least a decade. It lifted revenue growth guidance to 9-10.5% from the previous projection of 4.5-6.5% and earnings per share guidance to $3.73-$3.78 from $3.51-$3.58.
ETFs in Detail
iShares U.S. Telecommunications ETF (IYZ - Free Report)
iShares U.S. Telecommunications ETF offers exposure to U.S. companies that provide telephone and Internet products, services and technologies. It follows the Russell 1000 Telecommunications RIC 22.5/45 Capped Index, holding 21 stocks in its basket. Cisco takes the top position at 16.4% of assets.
iShares U.S. Telecommunications ETF has AUM of $356.2 million and trades in an average daily volume of 767,000 shares. IYZ charges 39 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
iShares North American Tech-Multimedia Networking ETF
iShares North American Tech-Multimedia Networking ETF provides exposure to telecom equipment, data networking and wireless equipment companies by tracking the S&P North American Technology-Multimedia Networking Index. iShares North American Tech-Multimedia Networking ETF has 22 securities in its basket, with Cisco taking the third spot holding an 8.5% allocation.
iShares North American Tech-Multimedia Networking ETF has accumulated $356.2 million in its asset base and sees a good volume of around 767,000 shares a day. IGN charges 39 bps in annual fees and carries a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
Pacer Data and Digital Revolution ETF (TRFK - Free Report)
Pacer Data and Digital Revolution ETF aims to offer investors exposure to the globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 82 stocks in its basket. Out of these, Cisco is the third firm, accounting for an 8.4% share.
Pacer Data and Digital Revolution ETF debuted in the space in June last year and has accumulated $1 million in its asset base. It has an expense ratio of 0.60% and trades in a meager volume of under 500 shares per day on average (read: Intel Plunges on Earnings Miss, Weak Guidance: ETFs in Focus).
First Trust Nasdaq Cybersecurity ETF (CIBR - Free Report)
First Trust Nasdaq Cybersecurity ETF follows the Nasdaq CTA Cybersecurity Index, which measures the performance of companies engaged in the cybersecurity segment of the technology and industrial sectors. The index includes companies primarily involved in the building, implementation and management of security protocols applied to private and public networks, computers and mobile devices to provide protection for the integrity of data and network operations. First Trust Nasdaq Cybersecurity ETF holds 36 stocks in its basket, with Cisco taking the fifth spot at 5.6%.
First Trust Nasdaq Cybersecurity ETF has accumulated $4.8 billion in its asset base. CIBR charges 60 bps in annual fees and trades in an average daily volume of about 700,000 shares.
Invesco Dynamic Networking ETF
Invesco Dynamic Networking ETF offers exposure to the companies that are principally engaged in the development, manufacture, sale or distribution of products, services or technologies that support the flow of electronic information, including voice, data, images and commercial transactions. It follows the Dynamic Networking Intellidex Index, holding 31 securities in its basket. Of these, Cisco is the seventh firm, accounting for 5.1% share (read: Best Tech ETFs In Nasdaq's Worst Week Since December).
Invesco Dynamic Networking ETF is relatively unpopular and illiquid in the broad technology space, with AUM of $30 million and an average daily volume of about 4,000 shares. It charges 63 bps in annual fees and has a Zacks ETF Rank #1 with a High risk outlook.