4 Tech ETFs To Ride On Oracle's Solid Q2

After the closing bell yesterday, software giant Oracle (ORCL - Free Report) reported better-than-expected fiscal second-quarter 2019 results. The company beat the Zacks Consensus Estimate for earnings and revenues and offered a solid outlook.

Oracle Q2 Earnings in Focus

Earnings per share came in at 80 cents, beating the Zacks Consensus Estimate of 78 cents and improving 16% year over year. Revenues inched up 2% year over year to $9.60 billion and were above the estimated $9.54 billion.

Revenues from cloud services and license support rose 3% to $6.6 billion and accounted for 769% of total revenues.

For the fiscal third quarter, the world’s second-largest software maker expects total revenues to grow 2-4% on a constant currency basis, much above the Zacks Consensus Estimate of 0.9% growth. It also projects earnings per share of 83-85 cents; the high end of which is matching with the Zacks Consensus Estimate.

Solid results and an encouraging outlook pushed shares of Oracle up as much as 6% in aftermarket trade with elevated volumes. The stock jumped more than 6% in pre-market trade. It carries a Zacks Rank #3 (Hold) and has a VGM Score of C. It belongs to a top-ranked Zacks Industry (top 30%).  

ETFs in Focus

ETFs with the highest allocation to this software giant look to be big movers this week and in the next, as investors digest its scores and views. They should closely monitor the movement in these funds and grab any opportunity from a surge in the price of ORCL:

iShares North American Tech-Software ETF (IGV - Free Report)

This ETF provides exposure to the software segment of the broader U.S. technology space by tracking the S&P North American Technology-Software Index. The fund holds a basket of 63 securities with Oracle taking the top spot at 9.5% of total assets. It is popular with AUM of $1.9 billion and volume is good as it exchanges nearly 450,000 shares a day. The product charges 47 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a High-risk outlook.

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