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.
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