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Tech prime Cisco Systems (CSCO - Free Report) cheered investors with robust fourth-quarter fiscal 2023 results. The networking giant beat on both earnings and revenues but offered a downbeat guidance for the fiscal year.
CSCO shares were up 2.1% in after hours, putting ETFs with the largest allocation to this networking giant in focus. 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 First Trust Dow Jones Internet Index Fund (FDN - Free Report) .
Cisco Earnings in Detail
Earnings of $1.14 per share outpaced the Zacks Consensus Estimate of 95 cents and improved 37% from the year-ago earnings. Revenues grew 16% year over year to a record $15.2 billion and edged past the consensus mark of $15 billion. The robust performance was driven by strong growth in subscription-based services and the transition to AI-focused data centers (see: all the Technology ETFs here).
The company said it has already recorded $500 million in orders for AI products, which it offers to so-called hyperscaler customers — large cloud-computing service providers.
For the fiscal first-quarter 2024, Cisco expects revenues in the range of $14.5-$14.7 billion and earnings of $1.02-$1.04 per share. The networking giant expects fiscal 2024 revenues in the range of $57-$58.2 billion and earnings per share in the range of $4.01-$4.08.
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 20 stocks in its basket. Cisco takes the top position at 18.1% of assets (read: How Will Telecom ETFs React to Mixed Q2 Earnings?).
iShares U.S. Telecommunications ETF has AUM of $294.6 million and trades in an average daily volume of 816,000 shares. IYZ charges 40 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 21 securities in its basket, with Cisco taking the second spot, holding an 9.7% allocation.
iShares North American Tech-Multimedia Networking ETF has accumulated $55.6 million in its asset base and sees a good volume of around 13,000 shares a day. IGN charges 41 bps in annual fees and carries a Zacks ETF Rank #4 (Sell) 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 81 stocks in its basket. Out of these, Cisco is the third firm, accounting for a 6.8% share.
Pacer Data and Digital Revolution ETF has accumulated $4.9 million in its asset base. It has an expense ratio of 0.60% and trades in a meager volume of about 3000 shares per day on average. TRFK has a Zacks ETF Rank #2 (Buy).
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 35 stocks in its basket, with Cisco taking the second spot at 6.3%.
First Trust Nasdaq Cybersecurity ETF has accumulated $5 billion in its asset base. CIBR charges 60 bps in annual fees and trades in an average daily volume of about 403,000 shares (read: Why to Buy Nvidia Even After 212% YTD Jump? ETFs in Focus).
First Trust Dow Jones Internet Index Fund (FDN - Free Report)
First Trust Dow Jones Internet Index Fund follows the Dow Jones Internet Composite Index, giving investors exposure to the broad Internet industry. It holds about 42 stocks in its basket, with Cisco occupying the fourth spot at 5.2%.
First Trust Dow Jones Internet Index Fund is the most popular and liquid ETF in the broad technology space, with AUM of $5.8 billion and an average daily volume of around 713,000 shares. FDN charges 52 bps in fees per year and has a Zacks ETF Rank #2 with a High risk outlook.
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Cisco Beats on Q4 Earnings: ETFs in Focus
Tech prime Cisco Systems (CSCO - Free Report) cheered investors with robust fourth-quarter fiscal 2023 results. The networking giant beat on both earnings and revenues but offered a downbeat guidance for the fiscal year.
CSCO shares were up 2.1% in after hours, putting ETFs with the largest allocation to this networking giant in focus. 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 First Trust Dow Jones Internet Index Fund (FDN - Free Report) .
Cisco Earnings in Detail
Earnings of $1.14 per share outpaced the Zacks Consensus Estimate of 95 cents and improved 37% from the year-ago earnings. Revenues grew 16% year over year to a record $15.2 billion and edged past the consensus mark of $15 billion. The robust performance was driven by strong growth in subscription-based services and the transition to AI-focused data centers (see: all the Technology ETFs here).
The company said it has already recorded $500 million in orders for AI products, which it offers to so-called hyperscaler customers — large cloud-computing service providers.
For the fiscal first-quarter 2024, Cisco expects revenues in the range of $14.5-$14.7 billion and earnings of $1.02-$1.04 per share. The networking giant expects fiscal 2024 revenues in the range of $57-$58.2 billion and earnings per share in the range of $4.01-$4.08.
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 20 stocks in its basket. Cisco takes the top position at 18.1% of assets (read: How Will Telecom ETFs React to Mixed Q2 Earnings?).
iShares U.S. Telecommunications ETF has AUM of $294.6 million and trades in an average daily volume of 816,000 shares. IYZ charges 40 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 21 securities in its basket, with Cisco taking the second spot, holding an 9.7% allocation.
iShares North American Tech-Multimedia Networking ETF has accumulated $55.6 million in its asset base and sees a good volume of around 13,000 shares a day. IGN charges 41 bps in annual fees and carries a Zacks ETF Rank #4 (Sell) 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 81 stocks in its basket. Out of these, Cisco is the third firm, accounting for a 6.8% share.
Pacer Data and Digital Revolution ETF has accumulated $4.9 million in its asset base. It has an expense ratio of 0.60% and trades in a meager volume of about 3000 shares per day on average. TRFK has a Zacks ETF Rank #2 (Buy).
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 35 stocks in its basket, with Cisco taking the second spot at 6.3%.
First Trust Nasdaq Cybersecurity ETF has accumulated $5 billion in its asset base. CIBR charges 60 bps in annual fees and trades in an average daily volume of about 403,000 shares (read: Why to Buy Nvidia Even After 212% YTD Jump? ETFs in Focus).
First Trust Dow Jones Internet Index Fund (FDN - Free Report)
First Trust Dow Jones Internet Index Fund follows the Dow Jones Internet Composite Index, giving investors exposure to the broad Internet industry. It holds about 42 stocks in its basket, with Cisco occupying the fourth spot at 5.2%.
First Trust Dow Jones Internet Index Fund is the most popular and liquid ETF in the broad technology space, with AUM of $5.8 billion and an average daily volume of around 713,000 shares. FDN charges 52 bps in fees per year and has a Zacks ETF Rank #2 with a High risk outlook.