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, 2022, 2021 and 2020, there were 506,000, 276,000 and 0 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, except per share data)	2022		2021		2020
Weighted-average shares outstanding:
Basic		11,588		11,436		11,292
Stock options and restricted share units		489		571		658

Diluted		12,077		12,007		11,950

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)	2022		2021		2020
Net income	$	8,712	$	12,221	$	9,861
Basic weighted-average shares outstanding		11,588		11,436		11,292

Basic EPS	$	.75	$	1.07	$	.87

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)	2022		2021		2020
Net income	$	8,712	$	12,221	$	9,861
Diluted weighted-average shares outstanding		12,077		12,007		11,950

Diluted EPS	$	.72	$	1.02	$	.83

Historical Timeline

Fiscal Year	Filed
2022	Mar 27, 2023	Showing above
2021	Mar 14, 2022

2020	Mar 16, 2021

2019	Mar 30, 2020

2018	Mar 29, 2019

2017	Mar 23, 2018

2016	Mar 24, 2017

2015	Mar 25, 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.

Mastech Digital, Inc. Earnings Per Share Disclosure

Historical Timeline

About Earnings Per Share Disclosures

Other Available Disclosures