We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cisco Beats on Earnings, Trims Outlook: ETFs in Focus
Read MoreHide Full Article
Tech prime Cisco Systems (CSCO - Free Report) disappointed investors when it reported second-quarter fiscal 2024 results. Though the company beat estimates on both earnings and revenues, it provided a weak outlook and revealed plans to lay off 5% of its global workforce, pushing the share price down.
CSCO shares tumbled as much as 5% in the after-market hours. In the pre-market trading, the stock also moved down nearly 5% at the time of writing. The weak trading might get reflected in the ETFs with the largest allocation to this networking giant. Therefore, investors should keep a close eye on them in the coming days.
The ETFs include iShares U.S. Telecommunications ETF (IYZ - Free Report) , Amplify Cybersecurity ETF (HACK - Free Report) , FT Vest DJIA Dogs 10 Target Income ETF (DOGG - Free Report) , First Trust Nasdaq Cybersecurity ETF (CIBR - Free Report) and iShares Edge MSCI USA Value Factor ETF (VLUE - Free Report) .
Cisco’s Q2 Earnings in Detail
The company’s fiscal second-quarter earnings of 87 cents per share outpaced the Zacks Consensus Estimate of 84 cents and fell 1% from the year-ago earnings. Revenues fell 6% year over year to $12.8 billion and marginally beat the consensus mark of $12.72 billion (see: all the Technology ETFs here).
The networking giant lowered its fiscal 2024 revenue guidance from $53.8-$55.00 billion to $51.5-$52.5 billion, and earnings per share guidance from $3.87-$3.93 to $3.68-$3.74. For third-quarter fiscal 2024, Cisco expects revenues of $12.1-$12.3 billion and earnings of 84-86 cents per share.
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 19 stocks in its basket. Cisco takes the top position at 17.5% of the assets. iShares U.S. Telecommunications ETF has an AUM of $276.2 million and charges 40 bps in annual fees. It has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook. (Read: Assessing Telecomm ETFs Amid Q4 Earnings).
Amplify Cybersecurity ETF provides global exposure to the companies providing cyber security solutions that include hardware, software and services. It tracks the Nasdaq ISE Cyber Security Select Index, holding 24 securities in its basket.. Cisco takes the second position with 6.7% of assets. Amplify Cybersecurity ETF has amassed $2 billion in AUM and charges 60 bps in fees per year.
FT Vest DJIA Dogs 10 Target Income ETF is an actively managed fund that seeks to provide exposure to the "Dogs of the Dow" — the ten highest dividend-yielding stocks in the Dow Jones Industrial Average — on an annual basis. It holds 39 securities in its basket, with Cisco occupying the seventh position at 5.4% share. FT Vest DJIA Dogs 10 Target Income ETF has an AUM of $21.9 million and an expense ratio of 0.75%.
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 32 stocks in its basket, with Cisco taking the fifth spot at 5.3%. It has accumulated $6.7 billion in its asset base and charges 59 bps in annual fees.
iShares Edge MSCI USA Value Factor ETF offers exposure to large and mid-cap U.S. stocks with lower valuations based on fundamentals and tracks the MSCI USA Enhanced Value Index. It holds 150 stocks in its basket, with Cisco occupying the second position at 5.1% of assets. Information technology takes the largest share at 29.4%, while financials, healthcare and consumer discretionary round off the next three.
iShares Edge MSCI USA Value Factor ETF has amassed $7 billion in its asset base and charges 15 bps in annual fees. It has a Zacks ETF Rank #1 (Strong Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cisco Beats on Earnings, Trims Outlook: ETFs in Focus
Tech prime Cisco Systems (CSCO - Free Report) disappointed investors when it reported second-quarter fiscal 2024 results. Though the company beat estimates on both earnings and revenues, it provided a weak outlook and revealed plans to lay off 5% of its global workforce, pushing the share price down.
CSCO shares tumbled as much as 5% in the after-market hours. In the pre-market trading, the stock also moved down nearly 5% at the time of writing. The weak trading might get reflected in the ETFs with the largest allocation to this networking giant. Therefore, investors should keep a close eye on them in the coming days.
The ETFs include iShares U.S. Telecommunications ETF (IYZ - Free Report) , Amplify Cybersecurity ETF (HACK - Free Report) , FT Vest DJIA Dogs 10 Target Income ETF (DOGG - Free Report) , First Trust Nasdaq Cybersecurity ETF (CIBR - Free Report) and iShares Edge MSCI USA Value Factor ETF (VLUE - Free Report) .
Cisco’s Q2 Earnings in Detail
The company’s fiscal second-quarter earnings of 87 cents per share outpaced the Zacks Consensus Estimate of 84 cents and fell 1% from the year-ago earnings. Revenues fell 6% year over year to $12.8 billion and marginally beat the consensus mark of $12.72 billion (see: all the Technology ETFs here).
The networking giant lowered its fiscal 2024 revenue guidance from $53.8-$55.00 billion to $51.5-$52.5 billion, and earnings per share guidance from $3.87-$3.93 to $3.68-$3.74. For third-quarter fiscal 2024, Cisco expects revenues of $12.1-$12.3 billion and earnings of 84-86 cents per share.
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 19 stocks in its basket. Cisco takes the top position at 17.5% of the assets. iShares U.S. Telecommunications ETF has an AUM of $276.2 million and charges 40 bps in annual fees. It has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook. (Read: Assessing Telecomm ETFs Amid Q4 Earnings).
Amplify Cybersecurity ETF (HACK - Free Report)
Amplify Cybersecurity ETF provides global exposure to the companies providing cyber security solutions that include hardware, software and services. It tracks the Nasdaq ISE Cyber Security Select Index, holding 24 securities in its basket.. Cisco takes the second position with 6.7% of assets. Amplify Cybersecurity ETF has amassed $2 billion in AUM and charges 60 bps in fees per year.
FT Vest DJIA Dogs 10 Target Income ETF (DOGG - Free Report)
FT Vest DJIA Dogs 10 Target Income ETF is an actively managed fund that seeks to provide exposure to the "Dogs of the Dow" — the ten highest dividend-yielding stocks in the Dow Jones Industrial Average — on an annual basis. It holds 39 securities in its basket, with Cisco occupying the seventh position at 5.4% share. FT Vest DJIA Dogs 10 Target Income ETF has an AUM of $21.9 million and an expense ratio of 0.75%.
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 32 stocks in its basket, with Cisco taking the fifth spot at 5.3%. It has accumulated $6.7 billion in its asset base and charges 59 bps in annual fees.
iShares Edge MSCI USA Value Factor ETF (VLUE - Free Report)
iShares Edge MSCI USA Value Factor ETF offers exposure to large and mid-cap U.S. stocks with lower valuations based on fundamentals and tracks the MSCI USA Enhanced Value Index. It holds 150 stocks in its basket, with Cisco occupying the second position at 5.1% of assets. Information technology takes the largest share at 29.4%, while financials, healthcare and consumer discretionary round off the next three.
iShares Edge MSCI USA Value Factor ETF has amassed $7 billion in its asset base and charges 15 bps in annual fees. It has a Zacks ETF Rank #1 (Strong Buy).