Oracle (ORCL) posted better-than-expected fiscal 2012 third-quarter results after the close Tuesday. We continue to believe the shares have valuation upside and are sticking with our $38 per share fair value estimate. Total revenues advanced 3% thanks to roughly a 7% increase in new software license revenues and an 8% jump in software license updates and product support sales. Hardware systems products revenue fell 16%, however. Non-GAAP operating income advanced 8% to $4.2 billion, while non-GAAP net income jumped 13% from the same period a year ago. Non-GAAP earnings per share increased 15%, to $0.62, blowing by consensus expectations of $0.56 per share. On its conference call, Oracle said that it thinks non-GAAP, constant-currency revenue for the current quarter will increase between 1% and 5%, in-line with consensus, while it expects non-GAAP earnings per share to come in between $0.78 and $0.83 (consensus was at $0.76 per share). We expect the shares to converge to our fair value estimate slowly over time as the company continues to show better-than-expected performance on the bottom line.