Shares of Zillow (Z), which operates real estate and home-related information marketplaces, are rising after the company raised its fiscal 2016 revenue guidance.

WHAT'S NEW: After the close on Tuesday, Zillow reported first quarter adjusted earnings per share of (13c), which missed analysts' consensus estimates of (9c), and revenue of $186M, beating the consensus of $176.1M. Average monthly unique users for Q1 exceeded 156M, Zillow said, and noted that there was an all-time high of more than 166M unique users in March to Zillow Group consumer brands Zillow, Trulia, StreetEasy and HotPads, an increase of 22% year-over-year. Zillow said it achieved its highest market share in March, capturing 63% of the mobile and Web real estate audience. When looking at mobile-only, Zillow said it captured 72% of the category.

STRONG GUIDANCE: Looking ahead, Zillow sees Q2 revenue of $203M-$208M, well ahead of the consensus of $185.25M, and expects adjusted EBITDA for the quarter of $15M-$20M. Zillow also raised its revenue outlook for FY16 to $825M-$835M from $805M-$815M, topping the consensus of $794.26M, and backed its FY16 adjusted EBITDA guidance of $115M-$125M. CEO COMMENTARY: Zillow Group CEO Spencer Rascoff said the company was "off to an incredible start in 2016," and he expects the company to accelerate revenue growth during the year.

ANALYST REACTION: This morning, analyst research was positive. Cowen analyst Thomas Champion upgraded Zillow to Market Perform from Underperform and raised his price target to $23 from $12. The analyst said Q1 revenues beat estimates, Q2 guidance was better and customer count has stabilized. Another firm, Canaccord, raised its price target on Zillow to $34 from $26, citing the outperformance of Zillow's core Premier Agent business, impressive traffic metrics and improving funnel dynamics. Canaccord reiterated its Buy rating on Zillow shares.

PRICE ACTION: In late morning trading, Zillow rose $3.50, or about 14%, to $28.55 on nearly four times its average daily trading volume. Including today's advance, the shares have gained approximately 3% over the past 12 months.