Morgan Stanley to Spin Off Discover

RSA Security sees lower first-quarter earnings; French company EADS in talks to buy Nokia unit; plus more of Tuesday's stocks in the news

Morgan Stanley (MWD ) will pursue a spinoff of its Discover Financial Services unit. Separately, the company increases its reserve with respect to its Coleman litigation from $260 million to $360 million and will reduce its previously-announced preliminary first-quarter earnings per share by 6 cents to $1.29.

RSA Security (RSAS ) sees lower-than-expected 8 cents to 10 cents first-quarter earnings per share on revenue of $74 million to $76 million. The company cites slower-than-anticipated uptake rates for software products during the last month of the quarter.

Altiris (ATRS ) sees lower-than-expected 17 cents to 18 cents first-quarter earnings per share (pro forma) on $46 million in revenue. Cites accelerated sales, marketing hiring to support selected new products, and higher-than-planned general and accounting costs. S&P keeps buy.

American Greetings (AM ) posts 28 cents, vs. 62 cents fourth-quarter earnings per share on a 5.3% revenue drop and higher costs. The greeting card company sees first-quarter revenue from continuing operations flat to up slightly, and 25 cents to 30 cents earnings per share. It sees fiscal 2006 revenues up 1% and $1.46 to $1.51 earnings per share.

French-company EADS says it in advanced negotiations to acquire Nokia's (NOK ) Professional Mobile Radio business.

ConocoPhillips (COP ) provided first-quarter, vs. a fourth-quarter 2004 interim update. The company expects higher U.S. refining margins, lower international refining margins, significantly lower worldwide marketing margins, and increased turnaround activity and costs.

Ethan Allen (ETH ) sees 50 cents third-quarter earnings per share (excluding any adjustments for lease accounting) and $230 million revenue. The furniture company says the quarter was impacted by a sluggish economy, Easter falling in March vs. April a year ago, and implementation of everyday pricing.

Monro Muffler Brake (MNRO ) sees 4% to 5% higher fourth-quarter same-store sales and expects $1.36 to $1.37 fiscal 2005 earnings per share, in line with previous guidance.

Tweeter Home Entertainment (TWTR ) posted 4% lower second-quarter same-store sales and 3% lower total sales from continuing operations.

Corn Products (CPO ) sees first-quarter earnings per share down 35% to 40% from a year ago, due primarily to higher net corn costs, higher energy and freight costs, and manufacturing expense problems.

Napster Inc. (NAPS ) says its subscriber base grew by 143,000 in the fourth quarter, representing an over 53% sequential increase. The company raises its fourth-quarter revenue estimate to $16.5 million to $17.5 million.

International Speedway (ISCA ) posted 77 cents, vs. 52 cents first-quarter earnings per share on a 37% revenue rise. Due to an anticipated $1.5 million before-tax CART settlement, the company raises second-quarter earnings per share guidance to 47 cents to 49 cents. It raises fiscal 2005 revenue guidance to $715 million to $730 million and earnings per share to $2.87 to $2.93.

Navigant International (FLYR ) is subject to potential delisting on Nasdaq, due to a previously disclosed late filing of its 2004 10-K. As of commencement of trading today, an "E" will be appended to Navigant's trading symbol.

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