Numbers Grumbles Shear 8% Off Qwest
Why did Qwest (Q) fall 8% in heavy trading Thursday? Blame growing murmurs about the Denver-based telco's accounting.
The chatter has focused on how Qwest books large network-capacity deals with other telcos. The bears are speculating that Qwest's recent financial results got an unnatural boost from these deals. These critics point out that such transactions are accounted for in a manner that, while entirely legal, particularly helps Qwest's bottom line.
In an interview Thursday, Qwest's president, Afshin Mohebbi, and its finance chief, Robin Szeliga, dismissed such allegations and stood by their accounting practices. Mohebbi says "Qwest categorically denies" the charge that it has been using such deals to meet earnings estimates. ...
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