Amphenol Corporation (NYSE:APH) Q3 2019 Earnings Conference Call - Final Transcript
Oct 23, 2019 • 01:00 pm ET
Thank you. The question-and-answer period will now begin. Our first question comes from Wamsi Mohan -- your line -- from Bank of America. Your line is now open.
Yes, thank you. I have two quick ones. One is just on the guidance. You are not ruling forward the entire beat in [Phonetic] 3Q into the full year for revenues and I hear your commentary about the cautious backdrop macro-economically, but can you bridge that delta given the fact that there is $120 million upside in the quarter relative to the midpoint of your guidance, but $80 million sort of flow through. So that delta of $40 million, did you see some pull forward in the quarter or was it some other dynamic and I have a follow-up?
R. Adam Norwitt
Yeah, I mean, Wamsi, just -- you've done good math here. I would just point out a couple of factors. I mean, number one, currency is a drag in this guidance compared to prior guidance and not insignificant, I think somewhere to the tune of about $30 plus million of currency impact. We did have the positive impact of the acquisitions, I think as well. We've talked about all those given markets, I won't go into each of the markets, I think I already spent a long time to discuss those. But we feel very good about this guidance in its totality. When you think about the strength here in -- across many of our markets compared to what we saw last time, I think this is a very strong guidance.
The other thing I would just point out is that, we had a higher-than-expected mobile devices results in the third quarter and I think some of that came a little bit earlier than we would have expected, and doesn't necessarily represent a full year increase. I think some of that is higher for the year and that's why we've talked about the year being down in the kind of mid-20s instead of 30%, but the strength that we saw here in the quarter was -- some portion of that may have also come out of the fourth quarter.
Okay. Thanks, Adam. And as a quick follow-up on your comments on mobile devices, can you give us some color on whether the incremental strength you saw was more on the variable side or on the mobile phone side and if any color that you can share around if it came from existing products versus new products or increases in the content, that would be very helpful. Thank you.
R. Adam Norwitt
Yeah. No. Thank you. I guess the short answer is kind of all of the above, Wamsi. I think we did see strength -- more than expected strength in smartphones, but also in wearables and I would say it's on existing, but also in particular on the new products. So I think we've just seen a little bit better demand from a variety of customers across a variety of products. It is maybe the easiest way