announced that its board authorized management to pursue a spinoff of its Discover Financial Services unit. The move comes amid growing disenchantment among a group of former employees with CEO Phil Purcell. Morgan Stanley declined to reveal details of the Discover separation. Its stock rose 85 cents, or 1.4%, to $59.15 in after-hours trading.
said that it has reached an agreement to settle a lawsuit brought by TM Capital, a past financial adviser to the company. AMSC will make a cash payment of $1.7 million and issue a purchase warrant for 200,000 shares of common stock. The company expects to take a one-time charge to its income statement of approximately $2.7 million in the fiscal 2005 fourth quarter ended March 31. The stock was up 16 cents, or 1.6%, to $10.19 in after-hours trading.
reported a March load factor of 80.2%, an increase of 5.1 points compared to the same period a year ago. Traffic grew 9.1%, while capacity increased 2.1%. American boarded 8.7 million passengers in March. The stock was unchanged at $10.98.
said that it now expects to earn 16 cents to 18 cents a share, excluding certain items, on revenue in the range of $135 million to $138 million for the first quarter ended March 31. Analysts were expecting earnings of 19 cents a share on revenue of $143 million. The stock was down 89 cents, or 5.4%, to $15.49 in after-hours trading.
said it earned $9.7 million, or 15 cents a share, for the second quarter ended Feb. 28, compared to $2.5 million, or 4 cents a share, a year ago. Revenue for the quarter was $763.5 million. Analysts were expecting earnings of 13 cents a share on revenue of $780 million, according to Thomson First Call. The company also announced that it will sell 12.5 million common shares and use the proceeds to fund a tender offer for its 10.75% senior notes due in 2010. The stock was down 25 cents, or 1.1%, to $21.81 after the close.