It’s been a rough couple of years for both Intel Corporation (NASDAQ:INTC) and Yahoo! Inc. (NASDAQ:YHOO), but things appear to be looking up. Intel has finally gotten a foothold in the tablet business and Yahoo, soon to be weighed down with cash from its AliBaba business, has endless opportunities open to it. Both companies are reporting earnings after the market closes on Tuesday, here’s what to look for:

Intel Corporation, Yahoo! Inc. Earnings Preview

Yahoo core business, cogent strategy

AliBaba is probably going to layer the Yahoo! Inc. (NASDAQ:YHOO) with a thick layer of cash, but the company’s long term investors know that those days will soon be behind the firm. Yahoo needs to show that its core business is doing well, and that it has a real strategy going forward, in order to keep interest from those circles. Right now Yahoo is seen as a good way to get exposure to AliBaba, soon that firm will have its IPO and Marissa Mayer will have to make the company stand on its own.

Analysts are looking for Yahoo! Inc. (NASDAQ:YHOO) to show earnings of 38 cents per share by consensus this afternoon. Revenue is expected to come in at $1.1 billion for the quarter, which Yahoo records as its second of fiscal 2014. In the same three months of 2013 the internet search provider showed earnings per share of 35 cents on revenue of $1.1 billion.

Victor Anthony, of Topeka Capital Markets, is expecting Yahoo! Inc. (NASDAQ:YHOO) to show some gains in the second quarter report, but the analyst reckons that “a full turnaround is likely years out.” Anthony has a price target of $47 on the company’s stock and is hoping to see earnings of 39 cents per share from the company’s report this afternoon.

Intel sees unexpected recovery

Intel has ridden a rollercoaster in the last year or so, hearing that the age of the PC, from which it benefited so richly, was over last year in favor of the tablet, only to find PC sales looking up in the first half of 2014 while tablet sales had their first decline ever. The company’s earnings this afternoon should present the company in the midst of a transition it may never have needed, though the company’s future can only benefit from an improving PC market.

Analysts following the microchip maker were looking for earnings of 53 cents per share from the three months through June. Revenue was expected to come in at $13.7 billion according to a Bloomberg survey of 38 analysts following Intel Corporation (NASDAQ:INTC). In the same three months of last year Intel managed to earn 39 cents per share on revenue totaling $12.8 billion.

Imperial Capital analyst Ashok Kumar reckons that Intel Corporation (NASDAQ:INTC) is set to perform well over the medium term. The analyst put a price target of $37 on the company’s shares and estimated earnings per share of around 52 cents per share. Kumar thinks the company will see “improving sales for both desktop and notebooks PCs from pent up corporate demand and Microsoft’s license fee reduction for value priced PC fueling emerging market sell-through.”