UPDATE: Oppenheimer Downgrades DeVry to Perform on Negative Pre-Announcement

Oppenheimer reduced its rating on DeVry

from Outperform to Perform and removed its price target of $39. Oppenheimer noted, "DV pre-reported F4Q12 EPS of $0.43-0.46 vs. our/consensus of $0.78/$0.79. Revenue is expected to be $500-510M, below our/consensus of $512M/$519M. Reasons for the EPS shortfall include: 1) revenue shortfall due to increased DeVry University scholarships; 2) higher than anticipated inquiry generation and instructional costs; and 3) an accrual associated with DeVry University's administration of its Federal Perkins loan program (now resolved). …[W]e're significantly reducing FY12/FY13E EPS, and downgrade our rating to Perform from Outperform, on incremental revenue/margin concerns." DeVry closed at $27.56 on Monday.