Weighted EPS is a more accurate calculation because it takes into account any dividends that the company issues to shareholders. However, this formula is more complex than the basic earnings per share calculation or the reporting term, so it is not used quite as often even though it is more accurate.
 A dividend is an amount of money paid out to stockholders — often quarterly — from the company's profit.


For the sake of example, let's take Apple as the company we're trying to arrive at a calculation for. In 2012, Apple announced that it would pay a $2.5 billion dividend quarterly, starting in Q3.That amounts to roughly $5 billion in dividends over the course of the year.
 Using Apple as an example, a quick search reveals that in 2012, Apple recorded $41.73 billion in net income.Subtract $5 billion from 41.73 to arrive at $36.73 billion.
 Apple's net income minus their dividend in 2012 was $36.73 billion. Divide this amount by the amount of shares outstanding, 934.82 million, to arrive at a weighted EPS of roughly 39.29.
Modify the basic EPS calculation slightly to arrive at the weighted earning per share calculation.
Locate the company's dividends on preferred stocks.
Take the company's net income and subtract the dividends on preferred stock number.
Divide the difference by the average number of outstanding shares.
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