Shares of Valaris Ltd (VAL) are soaring 5.04% in pre-market trading on Thursday following the release of its outstanding first-quarter earnings report. The offshore drilling contractor significantly outperformed analyst expectations, demonstrating robust growth and financial strength.

Valaris reported an adjusted earnings per share (EPS) of $1.93 for the quarter ended March 31, dramatically surpassing the mean analyst expectation of $1.23. This result also marks a substantial improvement from the same quarter last year when the company reported an EPS of 35 cents. Revenue for the quarter rose by 18.2% to $620.70 million, comfortably beating the analyst consensus of $582.90 million.

Despite the impressive quarterly performance, it's worth noting that Valaris reported a net loss of $37.9 million for the period. However, investors appear to be focusing on the company's strong operational results and its ability to exceed market expectations. The positive earnings surprise has likely triggered renewed investor confidence, especially considering that Valaris shares had fallen by 17.7% this quarter and lost 27.0% year-to-date prior to this report. With a current average analyst rating of "buy" and a median 12-month price target of $53.00, the stock may have room for further growth if it can maintain this momentum.