Qwest Earnings Miss Expectations

A tax benefit helped Qwest Communications International Inc. record a big jump in third-quarter net income, but it wasn’t all good news for the Denver-based phone company.

A one-time benefit of $2.15 billion boosted Qwest’s 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. Qwest’s 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

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