A tax benefit helped Qwest Communications International Inc. record a big jump in third-quarter net income, but it wasnt all good news for the Denver-based phone company.
A one-time benefit of $2.15 billion boosted Qwests net-income to 2.07 billion in the third quarter, or $1.08 per share, compared with $194 million, or 9 cents per share, during the same period last year.
Analysts had predicted earnings upward of 15 cents a share. Qwests stock was down 84 cents, or 10.3 percent, in mid-morning trading Tuesday.
Overall revenue was down to $3.43 billion from $3,49 billion, down 1.5 percent in large part to 19 percent drop in wholesale services and an 8 percent drop in long-distance and local telephone services.
The teleco did add 111,000 broadband customers and 62,000 DIRECTV subscribers. Data, Internet and video services revenue of $1.3 billion grew to 37 percent of operating revenue and increased 10 percent over 2006.
Qwest Communications International Inc. www.qwest.com