WDC – Market expectations are for Uniform ROA to continue to decline, but management is confident about public cloud, growth, and demand

• Western Digital Corporation (WDC:USA) currently trades below recent averages relative to UAFRS-based (Uniform) earnings, with a 13.6x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about public cloud, growth in client devices and data center devices and solutions, and demand
  
  

• Specifically, management is confident that the public cloud rapidly accelerated innovation across a wide array of intelligent devices, that the adoption of 5G and the build-out of the edge is an exciting development, and that growth in client devices and data center devices and solutions should more than offset the decline in client solutions. In addition, they are confident that demand has held out well for them so far, and that they will monitor it going forward