It has been about a month since the last earnings report for Steel Dynamics (STLD Quick QuoteSTLD - Free Report) . Shares have added about 19.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Steel Dynamics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Steel Dynamics' Earnings and Sales Top Estimates in Q2

Steel Dynamics logged a net income of $1.2 billion or $6.44 per share in second-quarter 2022, up from $702.3 million or $3.32 in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at $6.73, topping the Zacks Consensus Estimate of $6.34.

Net sales in the quarter increased roughly 39% year over year to a record $6,212.9 million. The figure beat the Zacks Consensus Estimate of $6,066.3 million.

Segment Highlights

Net sales in the company's steel operations rose around 28.1% year over year to $4,142 million in the reported quarter. Operating income increased roughly 8.8% year over year to $1,106.7 million. The average product selling price for the unit rose around 19.1% year over year to $1,539 per ton in the reported quarter. The company had record steel shipments of around 3.1 million tons.

The company's steel fabrication operations raked in sales of around $1,085.8 million, up around 228.2% year over year. The segment posted an operating income of $599.2 million compared with an operating income of $28.5 million in the year-ago quarter.

Net sales in metals recycling operations increased around 12.9% year over year to $649.7 million. Operating income increased roughly 13.1% year over year to $57.6 million.

Financial Position

teel Dynamics ended the second quarter with cash and cash equivalents of $1,007 million, down around 10% from the year-ago quarter’s levels. Long-term debt declined to $3,011.1 million from $3,016.5 million in the year-ago quarter.

The company generated around $1 billion cash flow from operations in the second quarter.

Outlook

Steel Dynamics stated that customer order entry activity remains healthy across all businesses. It is seeing strong steel order activity from automotive, construction, and industrial sectors and improvement in energy despite weakening flat roll steel pricing. Order backlog remains at near-record volumes and forward pricing levels at its steel fabrication operations.

Steel Dynamics also stated that operations continue to ramp up at its Sinton Flat Roll Steel Mill and achieved run rates of 80%. It expects to realize meaningful improvement for the balance of the year.

The recently announced planned investment in a new state-of-the-art low-carbon aluminum flat rolled mill continues its strategic growth. It is aligned with its core steelmaking and recycling platforms, benefits many existing customers, and provides for future value creation. The company is well-placed for sustainable long-term growth and value creation, the company noted.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

Currently, Steel Dynamics has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Steel Dynamics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.