UPDATE: Oppenheimer Downgrades Synutra International to Perform on FQ2 Miss

Oppenheimer reduced its rating on Synutra International

from Outperform to Perform. Oppenheimer commented, "SYUT's F2Q13 earnings results were disappointing with revenue/EPS of $66.1M/($0.77) both missing our/Street estimates. Revenue was affected by the April 15%ASP increase, while more raw milk powder sales dragged GM down to 26.4%. … Mgmt lowered FY2013 revenue guidance from $380-400M to $300-350M and net income guidance from $50-57M to a net loss of $30-50M. … Although optimistic long term, we believe it's difficult to judge the near-term impact of major strategic changes. We will become more constructive once SYUT starts to regain market share." Synutra International closed at $4.38 on Monday.