SAN FRANCISCO--(BUSINESS WIRE)--National investor rights law firm Hagens Berman reminds investors that the Lead Plaintiff Deadline in the securities class action lawsuit against CarMax, Inc. (NYSE: KMX) – January 2, 2026 – is rapidly approaching. The lawsuit alleges that CarMax and certain of its executives misled investors about the true stability and growth prospects of its core business, leading to two separate and massive stock crashes. Hagens Berman urges investors who suffered substantial. ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in CarMax's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][3] Earnings Expectations - CarMax is expected to report quarterly earnings of $0.32 per share, reflecting a 60.5% decrease year-over-year [3] - Revenues are projected to be $5.79 billion, down 7% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 6.95% over the last 30 days, indicating a reassessment by analysts [4] - A negative Earnings ESP of -17.56% suggests analysts have become bearish on CarMax's earnings prospects [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but is more reliable for positive readings [7][8] - CarMax's current Zacks Rank is 5, which complicates predictions of an earnings beat [11] Historical Performance - In the last reported quarter, CarMax was expected to earn $1.03 per share but only achieved $0.64, resulting in a surprise of -37.86% [12] - Over the past four quarters, CarMax has beaten consensus EPS estimates twice [13] Conclusion - CarMax does not appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [16]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of CarMax, Inc. regarding a class action lawsuit alleging that the company made materially false and misleading statements about its growth prospects during a specified period [1]. Group 1: Allegations - The complaint claims that CarMax's defendants overstated the company's growth prospects, attributing earlier growth in the 2026 fiscal year to temporary factors related to customer behavior influenced by tariff speculation [1]. - It is alleged that the statements made by the defendants regarding CarMax's business operations and future prospects were materially false and lacked a reasonable basis throughout the relevant time [1]. Group 2: Class Action Details - The class period for the lawsuit is defined as June 20, 2025, to November 5, 2025, and shareholders who purchased shares during this time are encouraged to contact the Gross Law Firm [1]. - The deadline for shareholders to register for the class action and seek lead plaintiff status is January 2, 2026 [2]. Group 3: Firm's Commitment - The Gross Law Firm is recognized nationally for its commitment to protecting investors' rights against deceit and illegal business practices, aiming to ensure companies adhere to responsible business practices [3].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant stock drop attributed to potential violations of federal securities laws [1][2]. Group 1: Lawsuit Details - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [2]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [2]. Group 2: Company Performance and Stock Impact - CarMax reported disappointing financial results for Q2 of fiscal year 2026, including a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [5]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million the previous year, attributed to a "pull forward" in demand due to U.S. tariffs [5]. - Following the financial report, CarMax's stock dropped $11.45 per share, or roughly 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [6]. - An unexpected departure of CEO Bill Nash on November 6, 2025, and a weak preliminary Q3 outlook led to an additional stock drop of over 24% [6]. Group 3: Company Background - CarMax is a leading retailer of used cars, emphasizing a seamless customer experience and strong demand for its vehicles [3]. - The law firm Bleichmar Fonti & Auld LLP, which is representing the plaintiffs, has a strong track record in securities class actions, having recovered significant amounts from other companies [10].

Core Viewpoint - The article discusses a securities class action lawsuit against CarMax, Inc. (NYSE: KMX), highlighting the approaching Lead Plaintiff Deadline of January 2, 2026, and urging affected investors to contact the law firm Hagens Berman for potential participation in the case [1][5]. Summary by Sections Lawsuit Allegations - The lawsuit claims that CarMax and its executives misled investors regarding the stability and growth prospects of the business, resulting in significant stock declines of 44% following a disappointing earnings report and the unexpected termination of the CEO [2][4]. Class Period - The class period for the lawsuit is defined as June 20, 2025, to November 5, 2025, during which investors purchased CarMax securities [3]. Key Issues Highlighted - The complaint identifies two main undisclosed issues that allegedly inflated the stock price: - **Unsustainable Demand**: CarMax reportedly misrepresented Q1 2026 growth as being robust while failing to disclose that it was driven by a temporary surge in customer demand due to anticipated tariffs [4]. - **CarMax Auto Finance Risk**: Management assured investors about the stability of their loan reserves, which later revealed a significant increase in loan loss provisions amounting to $142 million, indicating high default risks [4]. Impact on Business - The lawsuit outlines the adverse impacts on CarMax's business, including: - A 24% decline in net EPS and a 40% sequential increase in loan loss provisions announced on September 25, 2025, leading to a 20% drop in stock price [4]. - The CEO's termination and a drastic cut in forward guidance, signaling systemic weaknesses in business operations [4]. Call to Action - Hagens Berman emphasizes the importance of the January 2nd deadline for investors seeking a leadership role in the lawsuit, encouraging those who suffered losses to reach out for assistance [5].

Core Viewpoint - A securities class action lawsuit has been filed against CarMax, Inc. for allegedly making false and misleading statements regarding its growth prospects during the Class Period from June 20, 2025, to November 5, 2025 [1][2]. Summary by Sections Allegations Against CarMax - The complaint claims that CarMax's management overstated the company's growth potential, attributing earlier growth in the 2026 fiscal year to temporary factors related to customer behavior influenced by tariff speculation [2]. - It is alleged that the positive statements made by the defendants about CarMax's business operations and future prospects were materially misleading and lacked a reasonable basis [2]. Lead Plaintiff Process - Investors in CarMax have until January 2, 2026, to apply to be appointed as lead plaintiff representatives in the class action lawsuit [3]. - The lead plaintiff will represent the interests of all class members and will select legal counsel to direct the litigation [3]. Law Firm Background - Kessler Topaz Meltzer & Check, LLP is a prominent law firm specializing in securities-fraud class actions and has a history of significant recoveries in securities litigation [4]. - The firm represents both individual and institutional investors and has received numerous accolades for its work in the field [4].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. for securities fraud following a significant drop in stock price attributed to potential violations of federal securities laws [1][3]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the District of Maryland, titled Jason Cap v. CarMax, Inc., et al., No. 1:25-cv-03602, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [3]. - Investors have until January 2, 2026, to request to be appointed to lead the case [3]. Group 2: Reasons for the Lawsuit - CarMax is accused of misleading investors regarding the demand for its vehicles, which was allegedly inflated due to a temporary boost from U.S. tariffs on cars [4]. - The unexpected departure of CEO Bill Nash on November 6, 2025, is also under investigation to determine if CarMax adequately assessed its portfolio of car loans [5]. Group 3: Stock Performance - On September 25, 2025, CarMax reported disappointing financial results, including a 5.4% decline in retail used unit sales and a net income drop from $132.8 million to approximately $95.4 million year-over-year [6]. - Following the financial report, CarMax's stock price fell by $11.45, or about 20%, from $57.05 to $45.60 per share [7]. - The announcement of CEO Bill Nash's departure and a weak preliminary Q3 2025 outlook led to an additional stock price drop of over 24% [7].

Core Viewpoint - A class action securities lawsuit has been filed against CarMax, Inc. alleging securities fraud that affected investors between June 20, 2025, and November 5, 2025 [1][2]. Group 1: Lawsuit Details - The complaint claims that defendants made false statements regarding CarMax's growth prospects, suggesting that earlier growth was due to temporary factors related to customer behavior influenced by tariff speculation [2]. - It is alleged that the statements made by defendants about CarMax's business operations and future prospects were materially false and misleading [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until January 2, 2026, to request to be appointed as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees [3]. Group 3: Firm Background - Levi & Korsinsky has a history of securing hundreds of millions of dollars for shareholders and has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Insights - CarMax, Inc. is a leading retailer of used vehicles in the U.S., operating through two segments: CarMax Sales Operations and CarMax Auto Finance, known for no-haggle pricing and comprehensive vehicle inspections [1] - The company is currently facing a class action securities lawsuit alleging securities fraud, which could impact investor sentiment and stock performance [3] - Evercore ISI has set a price target of $37 for CarMax, indicating potential downside from its current trading price of $39.26, which reflects a 5.76% premium over the target [2][5] - The stock has shown significant volatility, with a 52-week high of $91.25 and a low of $30.26, indicating active trading and investor interest [4][5] - CarMax's market capitalization is approximately $5.98 billion, with a trading volume of 3,230,319 shares on the NYSE [4]

Core Viewpoint - A class action securities lawsuit has been filed against CarMax, Inc. alleging securities fraud that affected investors between June 20, 2025, and November 5, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that defendants made false statements regarding CarMax's growth prospects, suggesting that earlier growth was a temporary benefit due to customer speculation about tariffs [2]. - It is alleged that the statements made by defendants about CarMax's business operations and prospects were materially false and misleading, lacking a reasonable basis [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until January 2, 2026, to request to be appointed as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, with no obligation to participate [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].