Earnings Per Share

Basic earnings per share is computed based on the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted-average number of shares of common stock outstanding plus the effect of potentially dilutive common shares outstanding during the period using the treasury stock method, which includes stock options and restricted stock units. The following table sets forth the computation of basic and diluted earnings per share:
 
Year Ended March 31,
 (In thousands, except per share data)
2017
 
2016
 
2015
Numerator
 
 
 
 
 
Net income
$
69,395

 
$
99,907

 
$
78,260

 
 
 
 
 
 
Denominator
 
 
 

 
 

Denominator for basic earnings per share - weighted average shares outstanding
52,976

 
52,754

 
52,170

Dilutive effect of unvested restricted stock units and options issued to employees and directors
386

 
389

 
500

Denominator for diluted earnings per share
53,362

 
53,143

 
52,670

 
 
 
 
 
 
Earnings per Common Share:
 
 
 

 
 

Basic net earnings per share
$
1.31

 
$
1.89

 
$
1.50

 
 
 
 
 
 
Diluted net earnings per share
$
1.30

 
$
1.88

 
$
1.49



For 2017, 2016, and 2015 there were 0.2 million, less than 0.1 million, and 0.3 million shares, respectively, attributable to outstanding stock-based awards that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

Historical Timeline

Fiscal YearFiled
2017May 17, 2017Showing above
2016May 17, 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.