09:14 AM EST, 11/11/2024 (MT Newswires) -- Wedbush said Monday that it is "cautiously optimistic" about Advance Auto Parts' ( AAP ) Q3 earnings, which are due on Thursday, and expects "modestly" weaker results from the RemainCo business following the sale of Worldpac.

"Based on our review of the historical pro forma financials, as well as our view of weakening sales trends for [Advance Auto Parts ( AAP ) in Q3], particularly in its DIY business, we now look for modestly worse RemainCo results and FY24 guidance than previously anticipated," Wedbush analysts Seth Basham, Matthew McCartney and Matt Quigley, said in a note Monday.

Wedbush said it expects a 2.5% to 3.5% decline in RemainCo comps, slightly lower than consensus, due to ongoing pressure in the DIY segment.

Despite expected declines in DIY sales, Wedbush said it sees "potential positives" from low investor expectations, "signs of progress" in Pro segment, a "credible" plan to improve operating margins of RemainCo, and plans to reduce debt.

Wedbush maintained its outperform rating on Advance Auto Parts' ( AAP ) stock with a $55 price target.

Shares of the company were up 1.7% in recent Monday premarket activity.

Price: 38.54, Change: +0.64, Percent Change: +1.69