ARGAN INC Earnings Per Share Disclosure
NOTE 13 – EARNINGS PER SHARE
Potentially dilutive securities include stock options and restricted stock units. Diluted earnings per share include only such securities that are actually dilutive. Basic and diluted earnings per share for Fiscal 2026, Fiscal 2025 and Fiscal 2024 are computed as follows (in thousands, except per share data):
2026 | | 2025 | | 2024 | ||||
Net income | $ | 137,774 | $ | 85,459 | $ | 32,358 | ||
Weighted average shares outstanding – basic | 13,772 | 13,448 | 13,365 | |||||
Effect of stock awards | 375 | 458 | 183 | |||||
Weighted average shares outstanding – diluted | 14,147 | 13,906 | 13,548 | |||||
Earnings per share | ||||||||
Basic | $ | 10.00 | $ | 6.35 | $ | 2.42 | ||
Diluted | $ | 9.74 | $ | 6.15 | $ | 2.39 | ||
Anti-dilutive securities not included | 1 | 105 | 685 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 26, 2026 | Showing above |
| 2025 | Mar 27, 2025 | |
| 2024 | Apr 11, 2024 | |
| 2023 | Apr 17, 2023 | |
| 2019 | Apr 10, 2019 | |
| 2018 | Apr 11, 2018 | |
| 2017 | Apr 11, 2017 | |
| 2016 | Apr 15, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.