15.
Earnings per Share
The computation of basic earnings per share (“EPS”) is based on the Company’s net income divided by the weighted average number of common shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options and restricted share units were exercised / released. The dilutive effect of stock options and restricted share units were calculated using the treasury stock method.
For the years ended December 31, 2020, 2019 and 2018, there were 0, 518,000 and 141,000 anti-dilutive stock options that were excluded from the computation of diluted earnings per share, respectively.
The following table sets forth the denominators of the basic and diluted EPS computations.
 
   
Years Ended December 31,
 
(Amounts in thousands)
  
2020
   
2019
   
2018
 
Weighted-average shares outstanding:
               
Basic
   11,292    11,029    10,950 
Stock options and restricted share units
   658    203    211 
   
 
 
   
 
 
   
 
 
 
Diluted
   11,950    11,232    11,161 
   
 
 
   
 
 
   
 
 
 
The following table sets forth the computation of basic EPS utilizing net income and the Company’s weighted-average common stock outstanding:
 
   
Years Ended December 31,
 
(Amounts in thousands, except per share data)
  
2020
   
2019
   
2018
 
Net income
  $9,861   $11,145   $6,691 
Basic weighted-average shares outstanding
   11,292    11,029    10,950 
   
 
 
   
 
 
   
 
 
 
Basic EPS
  $.87   $1.01   $.61 
   
 
 
   
 
 
   
 
 
 
The following table sets forth the computation of diluted EPS utilizing net income and the Company’s weighted-average common stock outstanding plus the weighted-average of stock options, restricted shares and performance shares:
 
   
Years Ended December 31,
 
(Amounts in thousands, except per share data)
  
2020
   
2019
   
2018
 
Net income
  $9,861   $11,145   $6,691 
Diluted weighted-average shares outstanding
   11,950    11,232    11,161 
   
 
 
   
 
 
   
 
 
 
Diluted EPS
  $.83   $.99   $.60 
   
 
 
   
 
 
   
 
 
 
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Historical Timeline

Fiscal YearFiled
2020Mar 16, 2021Showing above
2019Mar 30, 2020
2016Mar 24, 2017

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.