3D technology ETFs hold steady even as ADSK drops on slashed billing forecasts
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Exchange traded funds tied to 3D technology were generally unaffected during Wednesday's intraday trading, even as industry player Autodesk (NASDAQ:ADSK) dropped nearly 5% after providing a weak billing outlook in its Q3 earnings release.
Autodesk (ADSK) is owned by 244 different ETFs, but it forms a major part of the Pacer BlueStar Engineering the Future ETF (NASDAQ:BULD), with a portfolio allocation of 9.30% as per ETF.com.
ADSK is also well represented in ProShares S&P Kensho Smart Factories ETF (MAKX) with a 5.71% weighting, Direxion Daily Cld Cmptng Bl 2X Shs ETF (NYSEARCA:CLDL) with 4.91% weighting, 3D Printing ETF (BATS:PRNT) with 4.36% weighting and UPHOLDINGS Compound Kings ETF (BATS:KNGS) with 4.07% weighting.
CLDL, a leveraged fund focused on cloud computing, climbed 2% in intraday trading, despite the drop in ADSK. PRNT was showing a modest advance, while KNGS was sitting near the unchanged mark.
Shares of Audodesk dropped after the company lowered its FY2022 billing outlook. The firm said this came as customers have shown a rising preference for annual billings contracts compared to multi-year contracts.
The company now expects FY2022 billings to be between $5.57B to $5.67B, down from the prior view of $5.71B to $5.81B and a consensus of $5.74B.
Free cash flow is projected to be between $1.9B to $1.98B vs. a prior view of $2B to $2.08B.
"In a more challenging macroeconomic environment, Autodesk performed in line with our expectations in the third quarter, excluding the impact of in-quarter currency movements on revenue. Subscription renewal rates remained strong, as did our competitive performance," said Debbie Clifford, Autodesk CFO.
Clifford added: "Our fiscal 23 revenue, margin, and earnings per share guidance remains close to the previous mid-points at constant exchange rates and comfortably within our prior guidance ranges. Our lower billings and free cash flow guidance primarily reflect less demand for multi-year, up-front and more demand for annual contracts than we expected."
The board also approved a $5B share buyback program.
This led several analysts to issue comments on the stock:

J.P. Morgan analyst Stephen Tusa rates the stock as Neutral with a price target of $203. "Faster customers transition to annual billings the greater the decline in long-term deferred revenue, which will lead to greater negative near-term impact on free cash flow," he wrote in a research note.
KeyBanc analyst Jason Celino lowered his 12-month price target on the stock to $237 from $264, but maintains an overweight rating. He says "Autodesk lowered its guidance to reflect a host of reasons including foreign exchange, European macro, and potentially faster transition to annual billing.â
Baird adjusted its price target to $244 from $255 and maintains an outperform rating on the stock.
Citigroup adjusted its price target to $230 from $256 and maintains a buy rating on the stock.
BofA Securities adjusted its price target to $225 from $240 and maintains a neutral rating.
Rosenblatt Securities adjusted its price target to $235 from $270 and keeps a buy rating on the stock.
Mizuho downgrades the stock to neutral from buy and adjusts price target to $210 from $260.

On a YTD basis, ADSK lost around 31%.
For more on ADSK's long-term viability, see a deep dive from Seeking Alpha contributor Simple Investing, who praised the company's "resilient growth and sustainable profitability" in a research report released prior to the firm's earnings announcement.