Qwest Reported Declining Revenues In 3Q

Goldman Sachs has published a research report on Qwest Communications Q following the company's 3Q results. In the report, Goldman Sachs writes "Qwest continued its aggressive cost cutting, driving segment margins higher in Business (+190 bp) and Wholesale (+30 bp), while Mass Markets dipped by 50 bp. Consolidated margins hit a record 38.2%. Revenue declines moderated to 3.9% (3.3% ex wireless), the lowest rate in nearly two years. Notably, Business Markets rose 0.4% yoy and we believe low growth can be maintained despite economic challenges (high unemployment, low GDP growth). Wholesale results rose 0.3% qoq, an encouraging sign despite on-going headwinds." Goldman Sachs maintains its Buy rating and $7.25 price target. Qwest Communications closed yesterday at $6.75.