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Oracle Beats on Earnings in Q4, Shares Jump: ETFs to Tap
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After the closing bell yesterday, Oracle (ORCL - Free Report) reported solid fourth-quarter fiscal 2023 results, beating both revenue and earnings estimates. The software giant forecast an upbeat first quarter, driven by growing demand for its cloud offerings from companies deploying artificial intelligence (AI) (read: Will the AI Momentum Continue? ETFs to Buy).
Driven by robust results, shares of Oracle jumped 5.1% in after-market hours to hit a high of $122.87. Investors seeking to tap the strength could consider ETFs with the highest allocation to this software giant. These include iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , iShares U.S. Tech Independence Focused ETF (IETC - Free Report) , First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , Monarch Blue Chips Core ETF (MBCC - Free Report) and First Trust Cloud Computing ETF (SKYY - Free Report) .
Oracle Earnings in Focus
Earnings per share came in at $1.67, outpacing the Zacks Consensus Estimate of $1.58. Revenues rose 16.6% year over year to $13.8 billion and topped the estimated $13.74 billion. Strong revenue growth was powered by the infrastructure and applications cloud businesses that grew 76% and 45%, respectively. Both strategic cloud businesses are getting bigger and growing faster, hinting at another strong year in fiscal 2024 (see: all the Technology ETFs here).
Cloud revenues jumped 54% to $4.4 billion in the fiscal fourth quarter. Revenues from the two strategic cloud applications businesses, namely Fusion and NetSuite Cloud ERP applications, grew 26% and 22%, respectively, during the quarter. Oracle Fusion is the world's biggest cloud ERP business, while Oracle NetSuite is the second-biggest cloud ERP business.
Given unprecedented demand for cloud services, especially AI services, Oracle expects cloud revenues, excluding Cerner, to continue growing at least at similar rates experienced in fiscal 2023.
For the ongoing quarter, Oracle expects revenues to grow 8-10% and adjusted earnings per share in the range of $1.12 to $1.16. The Zacks Consensus Estimate is pegged at 8.3% for revenue growth and earnings per share stands at $1.17.
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 116 securities, with Oracle taking the fourth spot at 8.2% of the total assets.
iShares Expanded Tech-Software Sector ETF is popular with an AUM of $5.9 billion. Volume is good as it exchanges 705,000 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: Salesforce Slumps Despite Q1 Beats: ETFs in Focus).
iShares U.S. Tech Independence Focused ETF (IETC - Free Report)
iShares U.S. Tech Independence Focused ETF is an actively managed ETF providing exposure to U.S. companies with a focus on U.S. tech independence. It holds 163 stocks in its basket, with Oracle occupying the fourth position at 6.8% of assets.
iShares U.S. Tech Independence Focused ETF has accumulated $146.9 million in its asset base and trades in a light volume of 10,000 shares. It charges 18 bps in 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 93 securities in its basket. Of these firms, ORCL occupies the sixth position, making up 4.7% of the assets.
First Trust NASDAQ Technology Dividend Index Fund amassed $1.9 billion in its asset base and trades in a moderate volume of about 122,000 shares per day. The ETF charges 50 bps in annual fees.
Monarch Blue Chips Core ETF follows the Kingsview Blue Chips Core Index, which consists of established, well-recognized companies listed on the S&P 500 from a broad range of industries that demonstrate strength in the marketplace based on fundamental company data such as revenue, revenue growth, net income, and net income growth.
Monarch Blue Chips Core ETF has accumulated $36.9 million in AUM and charges 1.25% in annual fees. It trades in a volume of 3,000 shares per day on average.
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 65 stocks in the basket, Oracle takes the fifth position at 4.2% (read: 5 ETFs Leading the Tech Outperformance in May).
First Trust Cloud Computing ETF is able to manage $2.8 billion in its asset base while seeing a good volume of about 273,000 shares a day. SKYY charges 60 bps as annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
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Oracle Beats on Earnings in Q4, Shares Jump: ETFs to Tap
After the closing bell yesterday, Oracle (ORCL - Free Report) reported solid fourth-quarter fiscal 2023 results, beating both revenue and earnings estimates. The software giant forecast an upbeat first quarter, driven by growing demand for its cloud offerings from companies deploying artificial intelligence (AI) (read: Will the AI Momentum Continue? ETFs to Buy).
Driven by robust results, shares of Oracle jumped 5.1% in after-market hours to hit a high of $122.87. Investors seeking to tap the strength could consider ETFs with the highest allocation to this software giant. These include iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , iShares U.S. Tech Independence Focused ETF (IETC - Free Report) , First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report) , Monarch Blue Chips Core ETF (MBCC - Free Report) and First Trust Cloud Computing ETF (SKYY - Free Report) .
Oracle Earnings in Focus
Earnings per share came in at $1.67, outpacing the Zacks Consensus Estimate of $1.58. Revenues rose 16.6% year over year to $13.8 billion and topped the estimated $13.74 billion. Strong revenue growth was powered by the infrastructure and applications cloud businesses that grew 76% and 45%, respectively. Both strategic cloud businesses are getting bigger and growing faster, hinting at another strong year in fiscal 2024 (see: all the Technology ETFs here).
Cloud revenues jumped 54% to $4.4 billion in the fiscal fourth quarter. Revenues from the two strategic cloud applications businesses, namely Fusion and NetSuite Cloud ERP applications, grew 26% and 22%, respectively, during the quarter. Oracle Fusion is the world's biggest cloud ERP business, while Oracle NetSuite is the second-biggest cloud ERP business.
Given unprecedented demand for cloud services, especially AI services, Oracle expects cloud revenues, excluding Cerner, to continue growing at least at similar rates experienced in fiscal 2023.
For the ongoing quarter, Oracle expects revenues to grow 8-10% and adjusted earnings per share in the range of $1.12 to $1.16. The Zacks Consensus Estimate is pegged at 8.3% for revenue growth and earnings per share stands at $1.17.
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 116 securities, with Oracle taking the fourth spot at 8.2% of the total assets.
iShares Expanded Tech-Software Sector ETF is popular with an AUM of $5.9 billion. Volume is good as it exchanges 705,000 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: Salesforce Slumps Despite Q1 Beats: ETFs in Focus).
iShares U.S. Tech Independence Focused ETF (IETC - Free Report)
iShares U.S. Tech Independence Focused ETF is an actively managed ETF providing exposure to U.S. companies with a focus on U.S. tech independence. It holds 163 stocks in its basket, with Oracle occupying the fourth position at 6.8% of assets.
iShares U.S. Tech Independence Focused ETF has accumulated $146.9 million in its asset base and trades in a light volume of 10,000 shares. It charges 18 bps in 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 93 securities in its basket. Of these firms, ORCL occupies the sixth position, making up 4.7% of the assets.
First Trust NASDAQ Technology Dividend Index Fund amassed $1.9 billion in its asset base and trades in a moderate volume of about 122,000 shares per day. The ETF charges 50 bps in annual fees.
Monarch Blue Chips Core ETF (MBCC - Free Report)
Monarch Blue Chips Core ETF follows the Kingsview Blue Chips Core Index, which consists of established, well-recognized companies listed on the S&P 500 from a broad range of industries that demonstrate strength in the marketplace based on fundamental company data such as revenue, revenue growth, net income, and net income growth.
Monarch Blue Chips Core ETF has accumulated $36.9 million in AUM and charges 1.25% in annual fees. It trades in a volume of 3,000 shares per day on average.
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 65 stocks in the basket, Oracle takes the fifth position at 4.2% (read: 5 ETFs Leading the Tech Outperformance in May).
First Trust Cloud Computing ETF is able to manage $2.8 billion in its asset base while seeing a good volume of about 273,000 shares a day. SKYY charges 60 bps as annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.