Banc of America Cuts Qwest

Communications Today, Feb 21, 2003

Banc of America Securities on Thursday reduced its investment rating on Qwest Communications International [NYSE: Q] to "sell" from "neutral," citing projected revenue declines and a lack of dividends. Earlier this week, Qwest reported a fourth-quarter profit of $2.7 billion, or $1.161 a share, compared to a loss of $645 million, or 39 cents a share, a year earlier. Excluding one-time items, such as the company's gain from the first stage of the sale of the QwestDex unit and the completion of a debt exchange offer in December, Qwest reported a loss of $35 million, or 2 cents a share, compared to a loss of $377 million, or 23 cents a share, in the 2001 October-December period. Analysts had expected the company to report a loss of 11 cents per share, according to research firm Thomson First Call.

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