May 17, 2019

WDC – Market expectations are for Uniform ROA to fade to historical lows, but management is confident in hard drive sales and inventory levels

  • Western Digital Corporation (WDC:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 15.5x Uniform P/E, implying bearish expectations for the firm. However, management is confident in their ability to beat hard drive sales expectations and their inventory levels
  • Specifically, management is confident they can continue to beat quarterly hard drive sales expectations and that stabilized inventory levels can be a driver of growth and lead to more selective flash revenue opportunities.
To read this Embedded Expectations Analysis report in its entirety, please log into the Valens Research web app. If you don't have an account, you can sign up for the 30-day trial.