ETFs to Gain as Cisco Beats on Q3 Earnings, Lifts 2025 Outlook

Tech prime Cisco Systems CSCO reported robust third-quarter fiscal 2025 results, beating both earnings and revenue estimates. It lifted its outlook for the fiscal year, fueled by continued demand for the company’s technologies.CSCO shares jumped about 2% in after-market hours. Smooth trading is expected to continue in the ETF world as well, thereby making ETFs with the largest allocation to this networking giant compelling. The ETFs include iShares U.S. Telecommunications ETF IYZ, First Trust Nasdaq Cybersecurity ETF CIBR, iShares Edge MSCI USA Value Factor ETF VLUE, Pacer Data and Digital Revolution ETF TRFK and Amplify Cybersecurity ETF HACK.Cisco’s Q3 Earnings in DetailThe company’s earnings of 96 cents per share outpaced the Zacks Consensus Estimate of 91 cents and improved from the year-ago earnings of 88 cents. Revenues rose 11% year over year to $14.1 billion and beat the consensus mark of $14.06 billion. Product revenues jumped 15% to $10.37 billion, while services revenues climbed 2.6% to $3.78 billion. Cisco is currently benefiting from strong AI momentum fueled by the power of the company’s secure networking portfolio, trusted global partnerships, and valued customers (see: all the Communication Services ETFs here).The networking giant raised its fiscal 2025 revenue guidance forecast to the range of $56.5-$56.7 billion from the previous guidance of $56-$56.5 billion. It also lifted its earnings per share guidance to $3.77-$3.79 from $3.68-$3.74. The Zacks Consensus Estimate is pegged at $56.44 billion for revenues and $3.73 for earnings per share. The optimistic outlook is attributed to sustained demand for networking equipment driven by the rise of artificial intelligence applications.For the ongoing fiscal fourth quarter, Cisco predicts revenues in the range of $14.5-$14.7 billion and earnings in the band of 96-98 cents per share. The Zacks Consensus Estimate is pegged at $14.54 billion for revenues and 96 cents for earnings per share.ETFs in DetailiShares U.S. Telecommunications ETF (IYZ)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 17.2% of the assets. iShares U.S. Telecommunications ETF has an AUM of $377.6 million and charges 40 bps in annual fees. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.First Trust Nasdaq Cybersecurity ETF (CIBR)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 fourth spot at 7.2%. It has accumulated $8.7 billion in its asset base and charges 59 bps in annual fees (read: ETFs Set to Gain From Alphabet's Potential Wiz Deal). iShares Edge MSCI USA Value Factor ETF (VLUE)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 140 stocks in its basket, with Cisco occupying the top position at 6.6% of the assets. iShares Edge MSCI USA Value Factor ETF has amassed $6 billion in its asset base and charges 15 bps in annual fees. It has a Zacks ETF Rank #2 (Buy) with a Medium.Pacer Data and Digital Revolution ETF (TRFK)Pacer Data and Digital Revolution ETF aims to offer investors exposure to globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 77 stocks in its basket. Cisco takes the fourth spot, accounting for 6.1% of the assets. Pacer Data and Digital Revolution ETF has accumulated $57 million in its asset base and charges 60 bps in annual fees. Amplify Cybersecurity ETF (HACK)Amplify Cybersecurity ETF is the first cybersecurity ETF that invests in companies within the growing cybersecurity industry. It tracks the Nasdaq ISE Cyber Security Select Index, holding 23 securities in its basket. Cisco takes the second position with 6.2% of the assets. Amplify Cybersecurity ETF has amassed $2 billion in AUM and charges 60 bps in fees per year.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Amplify Cybersecurity ETF (HACK): ETF Research Reports First Trust NASDAQ Cybersecurity ETF (CIBR): ETF Research Reports iShares U.S. Telecommunications ETF (IYZ): ETF Research Reports iShares MSCI USA Value Factor ETF (VLUE): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks