CarMax(US:KMX) Prnewswireยท2025-11-07 15:35Core Points - CarMax, Inc. experienced a significant drop in share price, falling as much as $9.48 (-23%) following the announcement of CEO Bill Nash's termination effective December 1, 2025 [1] - The company reported disappointing preliminary financial results for Q3 2026, forecasting a comparable store unit decrease of 8% - 12% and net EPS between $0.18 - $0.36, which is below analysts' expectations of $0.69 [2] - A securities class action has been filed against CarMax, with the firm Hagens Berman investigating claims related to the company's disclosures about its business model and growth prospects [3][4] Financial Performance - CarMax's Q2 2026 results showed a year-over-year net EPS decline of 24%, with retail used unit sales down 5.4% and comparable store used unit sales down 6.3% [5] - The CarMax Auto Finance (CAF) loan portfolio faced scrutiny, reporting an 11.02% revenue decline year-over-year due to a $142 million loan loss provision, which is a nearly 40% sequential increase and approximately 24% year-over-year jump [6] Legal and Regulatory Issues - The class action lawsuit focuses on allegations that CarMax misled investors regarding its growth prospects and the quality of its CAF portfolio [4][7] - Hagens Berman is urging investors who suffered losses to come forward, with a lead plaintiff deadline set for January 2, 2026 [3]