Nvidia, Roku, Coronavirus, Royal Caribbean, Canopy Growth - 5 Things You Must Know Friday

Stock futures rise as investors assess the coronavirus outbreak in China; Nvidia's earnings beat is driven by a jump in data-center sales; Roku subscribers rise on new streaming launches from Disney and Apple.
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Here are five things you must know for Friday, Feb. 14:

1. -- Stock Futures Point Higher Even as Virus Cases Rise 

Stock futures rose modestly Friday as investors continued to parse data on the coronavirus outbreak in China and focused on solid underlying strength in the U.S. economy.

The overall number of confirmed cases of the coronavirus - known as Covid-19 - have risen to just below 65,000 and the number of deaths from the disease have climbed to 1,384.

Investors on Wall Street and overseas this week largely have ignored the grim reality of the virus and its potential economic fallout, lifting U.S., European and global stocks to all-time highs even as cash continues to find its way into defensive assets such as Treasury bonds, gold, the dollar and the yen.

Contracts tied to the Dow Jones Industrial Average rose 11 points, S&P 500 futures were up 3.60 points and Nasdaq futures gained 20.50 points.

The economic calendar in the U.S. on Friday includes Retail Sales for January at 8:30 a.m. ET, Import and Export Prices for January at 8:30 a.m., Industrial Production for January at 9:15 a.m. and Consumer Sentiment for February at 10 a.m.

Canopy Growth  (CGC) - Get Report was rising almost 17% in premarket trading to $22.80 after the Canadian cannabis company reported an adjusted EBITDA loss of C$91.7 million, narrower than analysts' estimates of a loss of C$110 million.

Drugmaker AstraZeneca  (AZN) - Get Report posted fourth-quarter core operating profit of $1.55 billion, down 29% from a year earlier and below analysts' forecasts, and said it was closely monitoring the impact of the coronavirus would have on its operations.

2. -- Nvidia's Earnings Beat Driven by Data-Center Sales

Nvidia  (NVDA) - Get Report rose sharply in premarket trading Friday, up 6.64% to $288.77, after a jump in data-center revenue helped the chipmaker post stronger-than-expected fourth-quarter profit.

Nvidia said adjusted earnings in the quarter were $1.89 a share, beating analysts' forecasts of $1.67. Revenue rose 40% to $3.11 billion, as data-center sales, which make up a third of the overall total, surged 43% from a year earlier.

Gaming revenue in the period was $1.49 billion, up 56% from a year earlier, but below estimates of $1.52 billion. 

Nvidia noted, however, that the still-unknown impact of the spreading coronavirus in China would clip current-quarter revenue by around $100 million. The company expects revenue of $2.94 billion to $3.06 billion in the first quarter, still above analysts' forecasts of $2.85 billion. 

"All in, while gaming came up a tad short, the data center was the focus area this time around and is the key reason behind the after-hours advance we're seeing," said Jim Cramer and the Action Alerts PLUS team, which owns Nvidia in its portfolio. "Though gaming is a crucial segment for the company, we don't view the results indicative of any fundamental issues on the gaming front and believe that the end market remains the fastest growing segment of the media and entertainment space. As gaming continues to advance in terms of complexity and graphics, we believe there remains plenty of room for Nvidia's gaming segment to grow."

3. -- Roku Subscribers Jump on New Streaming Launches 

Roku  (ROKU) - Get Report rose nearly 8% in premarket trading to $140.08 after the maker of streaming-media devices reported a fourth-quarter loss narrower than analysts' estimates, an increase in revenue and better-than-expected subscribers numbers as customers flocked to its platforms amid the launch of new offerings from Walt Disney  (DIS) - Get Report and Apple  (AAPL) - Get Report

Roku posted a quarterly loss of 13 cents a share on revenue of $411 million. Analysts has been expecting a loss of 14 cents a share on revenue of $391.6 million.

Subscribers to Roku's platforms jumped to 36.9 million, ahead of Wall Street's expectations of 36 million. Roku added 4.6 million new customers during the fourth quarter.

Roku said it expects first-quarter revenue of $300 million to $310 million, and forecast a 2020 total of between $1.58 billion and $1.62 billion, with both company estimates ahead of Wall Street forecasts.

"As new services come on that's good overall for Roku in terms of driving folks to the platform and increasing engagement," Chief Financial Officer Steve Louden said on a conference call. "And certainly, our business models are set up so that when partners create value on our platform, and we're well positioned to bring them a large audience and best in class tools that that they can create value and we can share in that."

4. -- Amazon Gets Injunction to Block Microsoft's $10 Billion Pentagon Cloud Contract

A U.S. judge granted Amazon.com AMZN an injunction seeking to block a $10 billion contract the Pentagon awarded to rival Microsoft  (MSFT) - Get Report to build the cloud infrastructure for the military’s computer systems.

The ruling would temporarily halt work on the Joint Enterprise Defense Infrastructure (JEDI)  project.

The project cannot proceed "until further order of the court," according to the decision by the Court of Federal Claims Judge Patricia Campbell-Smith. The judge’s full opinion was posted under seal.

The judge ordered Amazon to pay $42 million in security, the minimum amount that the government had requested in the event of a delay, Bloomberg reported. 

"We believe that we will ultimately be able to move forward with the work to make sure those who serve our country can access the new technology they urgently require," said Microsoft spokesman Frank Shaw.

5. -- Royal Caribbean Cancels 18 Cruises Because of Coronavirus

Royal Caribbean Cruises RCL said it canceled 18 cruises in Southeast Asia and switched up several itineraries because of the coronavirus outbreak.

The company said the changes to its schedule would reduce earnings by 65 cents a share in 2020, and added that if it was to cancel all its remaining departures in Asia - a move it said it wasn't planning - profits would take another hit of 55 cents a share.

“It is important that every organization acts responsibly, and we have already taken aggressive steps to minimize risk through boarding restrictions and itinerary changes,” CEO Richard Fain said in a statement. “Our focus on public health is unwavering.”