Mastech Holdings (NYSE: MHH) reported Q2 EPS of $0.33, $0.15 better than the analyst estimate of $0.18. Revenue for the quarter came in at $47.6 million versus the consensus estimate of $46.15 million.

Second Quarter 2020 Highlights:

• Total revenues declined 2% to $47.6 million, compared to revenues of $48.5 million in the 2019 second quarter, reflecting the impact of COVID-19;
• The Company's Data and Analytics Services segment reported $6.8 million of revenues, which represented a 2% increase compared to the second quarter of 2019;
• The IT Staffing Services segment achieved revenue of $40.8 million, which represented a decline of approximately 2% compared to a year earlier;
• Gross margins grew to a record 26.6%, which was 170 basis points higher than the second quarter of 2019;
• GAAP diluted earnings per share were $0.25 in the second quarter of 2020 versus $0.53 in the 2019 second quarter. The 2019 second quarter included a favorable $6.1 million pretax benefit for the revaluation of a contingent consideration liability which favorably impacted GAAP diluted earnings per share by $0.40; and
• Non-GAAP diluted earnings per share were $0.33 in the second quarter of 2020 versus $0.20 in the 2019 second quarter.

Mastech's Response to COVID-19:

Vivek Gupta, the Company's President and Chief Executive Officer, stated, "I am pleased to say that the revenue decline was smaller than anticipated; and that our proactive actions, such as moving our entire workforce to a work-from-home model, instituting balanced austerity measures, and resisting temporary pricing pressures, allowed us to largely eliminate any negative impact on our gross margins and operating profits during the second quarter of 2020. Additionally, I believe our approach to date in responding to the crisis will serve us well in preparation for a future economic recovery."

For earnings history and earnings-related data on Mastech Holdings (MHH) click here.