01:54 PM EDT, 05/30/2024 (MT Newswires) -- Advance Auto Parts' ( AAP ) full-year guidance implied a "sharp improvement in trends" during the second half of fiscal 2024 as the company narrowly missed consensus in Q1 and pointed to a weaker Q2 than expected, Wedbush said in a note Thursday.

Advance Auto Parts ( AAP ) said it is targeting fiscal year 2024 earnings of $3.75 to $4.25 per diluted share on net sales of $11.3 billion to $11.4 billion.

Wedbush noted that the company has yet to complete the sale of its Worldpac division, although Advance Auto Parts ( AAP ) expects to do so by the time it reports its fiscal Q2 financial results. Analysts also said concerns are rising about the poor profitability of the company's core business, although the company is taking steps to become competitive by reducing prices on 8,500 stock keeping units, or SKUs, at a cost of $40 million annually.

The firm said Advance Auto Parts ( AAP ) faces "heavy lifting still ahead, unclear value of Worldpac, limited visibility to benefits from pricing and supply chain changes, and another material accounting weakness identified."

Wedbush reduced its price target on the stock to $65 from $70, and maintained a neutral rating.

Advance Auto Parts ( AAP ) shares were up 7.5% in recent Thursday trading.

Price: 67.19, Change: +4.71, Percent Change: +7.54