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United Technologies Made to Recall Faulty Kidde Smoke Alarms
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Kidde, a division of United Technologies Corporation , has acknowledged that its 425,000 sensor smoke alarms have manufacturing defects and the risk of failing to alarm the owners in case of a fire.
The defective products include PI2010 and PI9010 models. Sold at stores from Sep 10, 2016 to Oct 13, 2017, these products have been called back by the company, keeping in mind consumer safety. While some units were also sold on ShopKidde.com and other websites in January 2018 for $20 to $40 per piece, 40,000 units were sold in Canada.
Per the company, a yellow cap left on during the manufacturing process can cover one of the two smoke sensors and compromise the smoke alarm's ability to detect smoke. Customers are advised to remove the alarm and check whether a yellow cap is visible through the opening on the side. They are advised not to take the alarm apart or attempt to remove the yellow cap themselves but to immediately contact the company and request for a replacement.
Kidde has also worked closely with the U.S. Consumer Product Safety Commission and other relevant authorities to voluntarily initiate a recall and ensure that defective smoke alarms are replaced with new models as early as possible.
In the last three months, the company’s shares have outperformed the industry. While United Technologies has lost 0.2%, the industry declined 5.2%. However, the recent product recall could impair the credibility of the company and hurt its shares in the long term.
Meanwhile, the company continues to invest in innovative products by increasing engineering expenditures, delivering value to its customers and securing orders that should drive top-line growth in future.
Furthermore, United Technologies’ aftermarket services business seems to be relatively stable compared with new product delivery. This, in turn, helps it to offset the downturns in the new products market. Also, the company generates solid free cash flow through a disciplined capital deployment strategy.
Raven has an expected long-term earnings growth rate of 10%. It exceeded earnings estimates thrice in the trailing four quarters, with an average of 20.2%.
3M has an expected long-term earnings growth rate of 10.2%. It exceeded earnings estimates thrice in the trailing four quarters, with an average of 3.2%.
Crane has an expected long-term earnings growth rate of 13%. It exceeded earnings estimates in each of the trailing four quarters, the average being 2.6%.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
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United Technologies Made to Recall Faulty Kidde Smoke Alarms
Kidde, a division of United Technologies Corporation , has acknowledged that its 425,000 sensor smoke alarms have manufacturing defects and the risk of failing to alarm the owners in case of a fire.
The defective products include PI2010 and PI9010 models. Sold at stores from Sep 10, 2016 to Oct 13, 2017, these products have been called back by the company, keeping in mind consumer safety. While some units were also sold on ShopKidde.com and other websites in January 2018 for $20 to $40 per piece, 40,000 units were sold in Canada.
Per the company, a yellow cap left on during the manufacturing process can cover one of the two smoke sensors and compromise the smoke alarm's ability to detect smoke. Customers are advised to remove the alarm and check whether a yellow cap is visible through the opening on the side. They are advised not to take the alarm apart or attempt to remove the yellow cap themselves but to immediately contact the company and request for a replacement.
Kidde has also worked closely with the U.S. Consumer Product Safety Commission and other relevant authorities to voluntarily initiate a recall and ensure that defective smoke alarms are replaced with new models as early as possible.
In the last three months, the company’s shares have outperformed the industry. While United Technologies has lost 0.2%, the industry declined 5.2%. However, the recent product recall could impair the credibility of the company and hurt its shares in the long term.
Meanwhile, the company continues to invest in innovative products by increasing engineering expenditures, delivering value to its customers and securing orders that should drive top-line growth in future.
Furthermore, United Technologies’ aftermarket services business seems to be relatively stable compared with new product delivery. This, in turn, helps it to offset the downturns in the new products market. Also, the company generates solid free cash flow through a disciplined capital deployment strategy.
Zacks Rank & Key Picks
United Technologies has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry are Raven Industries, Inc. sporting a Zacks Rank #1 (Strong Buy), and 3M Company (MMM - Free Report) and Crane Co. (CR - Free Report) carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Raven has an expected long-term earnings growth rate of 10%. It exceeded earnings estimates thrice in the trailing four quarters, with an average of 20.2%.
3M has an expected long-term earnings growth rate of 10.2%. It exceeded earnings estimates thrice in the trailing four quarters, with an average of 3.2%.
Crane has an expected long-term earnings growth rate of 13%. It exceeded earnings estimates in each of the trailing four quarters, the average being 2.6%.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>