Qwest Makes Good Profit, but Analysts Remain Skeptical in Long Term

6:35 am on November 1, 2006 | Category: Business, Internet, Telecom Services, Telephone

lines.jpg

Regional U.S. telephone provider, Qwest Communications, has reported some strong profits for the third quarter, but a disappointing cash flow forecast has failed to boost investors’ confidence in the company.

Qwest made a profit of $194 million in quarter three, compared with a loss of $144 million for the same period last year. These numbers seem to suggest a reversal in the company’s fortunes, which have been largely negative in recent years, but many analysts are doubtful that this will be a long-term trend.

Qwest is facing intense competition from cable operators, including Comcast, which are offering all-in-one bundled packages of TV, digital phone, and high-speed internet access.

“I think they’re starting to show competition from Comcast and Cox,” said Janco Partners analyst, Donna Jaegers, despite Qwest’s favorable earnings in the third quarter. The company’s operating revenue, after all, has failed to grow in the past year, falling from $3.5 billion to $3.49 billion.

Related Articles:

    None Found

    No Comments yet »

    RSS feed for comments on this post.

    Leave a comment

    XHTML: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


    Published by TeleClick Enterprises
    Edited by Jeremy Maddock