DENVER, Colo. (TheStreet) -- Qwest Communications (Q) is maintaining its full-year revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) guidance after a 81.6% decline in first-quarter net income, due mainly to tax charges.
Qwest continues to expect to achieve full-year adjusted EBITDA in a range of $4.3 billion to $4.4 billion, and improving revenue comparisons over the course of 2010 with the year-over-year reported decline improving to a low- to mid-single digit rate by the fourth quarter.
Qwest Communications reported that net income for the first quarter was $38 million, or 2 cents a share -- including an 8 cent non-cash charge for the disallowance of certain federal income tax deductions under the Medicare Part D program -- compared to $206 million, or 12 cents a share in the prior year.
The Wall Street consensus target for the first quarter was 9 cents a share.
During the quarter, the company also recognized a pre-tax charge of $53 million due to the early retirement of debt, and severance and realignment.
Revenue was $2.97 billion, down from $3.17 billion the previous year, but beat the average estimate of $2.94 billion, with its Business Markets segment revenue down 1%, Mass Markets revenue down 11%, and Wholesale Markets down 11%.
Qwest stock is down 0.2% at $5.24 a share shortly after the market open.
-- Reported by Andrea Tse in New York
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