Earnings: Dynex Capital, Walmart, Macy's and Home Depot

Richmond-area firm: Dynex Capital

Dynex Capital Inc. reported fourth-quarter net income of $14.4 million, or 36 cents per share, compared with $9.6 million, or 40 cents per share, in the year-earlier period.

For the year, the Henrico County-based real estate investment trust reported $39.8 million, or $1.03 per share, compared with $29.5 million, or $1.41 per share, for 2010.

Also Tuesday, the company issued a warning to shareholders about proper income tax reporting procedures on 2011 common stock dividends paid by Dynex.

A portion of the dividends represents distributions of ordinary taxable income and a portion represents the return of capital, the company said.

The portions of distributions characterized as ordinary taxable income are not eligible for the tax-rate reductions enacted for qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003 and are being reported as non-qualifying dividends, the company said.

Three quarterly dividends of 27 cents per share were paid to shareholders and $0.2422 of that dividend should be reported as ordinary income with the remaining as return of capital. For the fourth quarter dividend of 28 cents per share, $0.2523 should be reported as ordinary income.

Carol Hazard

Dow Industrial firm: Walmart

Bargain-hungry shoppers flocked to Walmart in the fourth quarter, helping it to record its first increase in store traffic in at least two years.

In the fourth quarter, Walmart posted its second consecutive quarterly gain in revenue at stores opened at least a year at its namesake stores in the U.S. That revenue rose 1.5 percent in the quarter, slightly below the 1.6 percent gain analysts expected.

Overall, its U.S. business had a 2.1 percent increase in revenue at stores opened at least a year, including a 5.4 percent rise at Sam's Clubs.

Net sales, excluding membership fees from its Sam's Club division, rose 5.9 percent to $122.28 billion. Analysts had been expecting revenue of $123.9 billion.

The discounter said net income was $5.16 billion, or $1.50 per share in the three months ended Jan. 31. That compares with $6.05 billion, or $1.70 per share, in the year ago period.

Excluding certain tax matters and real estate transactions, Walmart recorded $1.44 per share in the latest quarter. The year-ago results included benefits from discontinued operations; excluding those benefits, earning were $1.41 per share. Analysts were expecting earnings per share of $1.46.

The Associated Press

Major local employers: Macy's Inc.

A strong holiday shopping season and hearty online sales pushed Macy's Inc.'s fiscal fourth quarter net income up 12 percent. That topped Wall Street's expectations.

Macy's said it earned $745 million, or $1.74 per share, for the period that ended Jan 28. A year earlier, it earned $667 million, or $1.55 per share.

Excluding gains from the sale of store leases related to the 2006 sale of Lord & Taylor and expenses tied to some store closings, the company reported adjusted earnings of $1.70 per share. Revenue rose 5.5 percent to $8.72 billion.

That topped the average expectations of analysts, who predicted adjusted earnings of $1.65 per share and revenue of $8.7 billion.

Revenue at stores open at least a year, which includes online sales, climbed 5.2 percent.

For the year, Macy's earned $1.26 billion, or $2.92 per share, up from $847 million, or $1.98 per share, the previous year. Adjusted earnings were $2.88 per share.

Full-year revenue increased 5.6 percent to $26.41 billion from $25 billion. Revenue at stores open at least a year increased 5.3 percent.

The Associated Press

Home Depot

Home Depot Inc. said Tuesday that its fiscal fourth-quarter net income rose 32 percent as homeowners spent more on renovation projects in part due to the mild weather in the U.S.

The company said it earned $774 million, or 50 cents per share, for the period that ended Jan. 29. That's up from $587 million, or 36 cents per share, a year earlier. Quarterly revenue increased 6 percent to $16.01 billion.

Analysts on average expected earnings of 42 cents per share and revenue of $15.5 billion.

For the fiscal year, Home Depot's earnings increased 16 percent to $3.88 billion, or $2.47 per share, from $3.34 billion, or $2.10 per share, in the prior year.

The Associated Press