After the closing bell yesterday, software giant Oracle (ORCL - Free Report) reported better-than-expected fiscal third-quarter 2020 results. The company beat the Zacks Consensus Estimate for earnings and revenues on growing cloud business.
Earnings per share came in at 97 cents, beating the Zacks Consensus Estimate of 96 cents and improving 11% from the year-ago quarter. Revenues grew 1.9% year over year to $9.8 billion, representing the best growth in nearly two years, and were above the estimated $9.78 billion (see: all the Technology ETFs here).
For the fiscal fourth quarter of 2020, the world’s second-largest software maker expects total revenues to be down 2% to up 2%. It projects earnings per share of $1.20-$1.28. The midpoint of the range is above the Zacks Consensus Estimate of $1.22.
After rising 3.7% in aftermarket hours, Oracle shares were up 6.1% in early pre-market trading. The company carries a Zacks Rank #3 (Hold) and has a Value Score of B. It belongs to a top-ranked Zacks Industry (top 24%).
ETFs in Focus
ETFs with the highest allocation to this software giant are likely to be big movers this week and in the next, as investors have a closer look at its numbers. They should closely monitor the movement in these funds and grab any opportunity from a surge in the price of ORCL:
iShares Expanded Tech-Software Sector ETF (IGV - Free Report)
This 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 102 securities with Oracle taking the fourth spot at 7.3% of total assets. It is popular with AUM of $3 billion and volume is good as it exchanges nearly 698,000 shares a day. The product charges 46 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Bull Market Turns 11: 5 ETF Winners).
Invesco BuyBack Achievers ETF (PKW - Free Report)
This ETF follows the NASDAQ US BuyBack Achievers Index, which comprises U.S. securities issued by corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing 12 months. It holds a basket of 244 stocks with Oracle taking the third position at 4.8% allocation. PKW has accumulated $987 million in its asset base and trades in average daily volume of 105,000 shares. It charges 62 bps in annual fees (read: Buyback or Dividend: Which ETF Has Won Over Time?).
First Trust Cloud Computing ETF (SKYY - Free Report)
This fund provides exposure to cloud-computing securities by tracking the ISE Cloud Computing Index. Holding about 63 stocks in the basket, Oracle takes the fourth spot at 3.8% of the assets. The product has been able to manage $2.2 billion in its asset base while seeing a good volume of about 234,000 shares a day. It has 0.60% in expense ratio and a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: 3 ETFs to Profit from Explosive Growth of Cloud Computing).
First Trust NASDAQ Technology Dividend Index Fund (TDIV - Free Report)
This fund provides exposure to the dividend payers in the technology sector by tracking the Nasdaq Technology Dividend Index. The product has amassed about $1 billion in its asset base and trades in moderate volume of about 105,000 shares per day. The ETF charges 50 bps in annual fees and holds about 93 securities in its basket. Of these firms, ORCL occupies the ninth position, making up roughly 3.6% of the assets
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