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Cisco Systems (CSCO) pleased investors with its strong fourth-quarter fiscal 2023 results. The company surpassed both earnings and revenue expectations. However, it provided a cautious guidance for the fiscal year.

In detail, Cisco reported earnings of .14 per share, which exceeded the Zacks Consensus Estimate of 95 cents. This marked a 37% improvement from the previous year’s earnings. Revenues also grew by 16% year over year, reaching a record .2 billion, surpassing the consensus mark of billion.

The company’s robust performance can be attributed to the strong growth in subscription-based services and the transition to AI-focused data centers. Cisco has already received 0 million in orders for AI products, which are offered to large cloud-computing service providers known as hyperscalers.

For the first quarter of fiscal 2024, Cisco expects revenues in the range of .5-.7 billion and earnings of .02-.04 per share. The company’s guidance for fiscal 2024 projects revenues in the range of -.2 billion and earnings per share in the range of .01-.08.

Following the positive results, Cisco’s shares were up 2.1% in after-hours trading, which drew attention to ETFs with the largest allocation to the company. These include iShares U.S. Telecommunications ETF (IYZ), iShares North American Tech-Multimedia Networking ETF (IGN), Pacer Data and Digital Revolution ETF (TRFK), First Trust Nasdaq Cybersecurity ETF (CIBR), and First Trust Dow Jones Internet Index Fund (FDN).

IYZ provides exposure to U.S. companies that offer telephone and internet products, services, and technologies. It holds 20 stocks in its portfolio, with Cisco being the top holding at 18.1% of assets. IGN, on the other hand, focuses on telecom equipment, data networking, and wireless equipment companies. Cisco takes the second spot in IGN’s portfolio with a 9.7% allocation.

TRFK aims to give investors exposure to globally-listed stocks and depositary receipts of data and digital revolution companies. Cisco holds the third spot in this ETF’s portfolio with a 6.8% share. CIBR follows the Nasdaq CTA Cybersecurity Index and holds 35 stocks, with Cisco occupying the second spot at 6.3%. Lastly, FDN tracks the Dow Jones Internet Composite Index and includes Cisco as the fourth holding at 5.2%.

These ETFs offer investors a way to gain exposure to Cisco and potentially benefit from its positive earnings results. However, it is important to conduct thorough research and evaluate the risks before making any investment decisions.

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