Harman International Industries, Inc. HAR is expected to report third-quarter fiscal 2016 results on Apr 28. Last quarter, it posted a positive earnings surprise of 7.60%. Harman has posted positive earnings surprises in three out of the trailing four quarters, resulting in an average positive earnings surprise of 2.92%. Let’s see how things are shaping up for this announcement. Factors at Play This time, given the ongoing volatility in the U.S. auto market, there might be some growth issues for the company. This is because Harman is exposed to some serious customer concentration risks with its top five customers accounting for approximately half of its revenues and around 75% of its auto-related revenues. Nonetheless, Harman is one of the leading providers in the car infotainment space. Apart from audio equipment, Harman’s cloud platform and scalable technology are gaining popularity with a rise in the number of connected cars. In Feb 2016, Harman collaborated with InterDigital IDCC to develop a range of cutting-edge IoT services. In addition, Harman’s new manufacturing capacities, solid patent portfolio, new awards as well as product launches are expected to boost the top line and profitability. However, of late, the company has been seeing downward estimate revisions, which make us cautious. Earnings Whispers Our proven model does not conclusively show that Harman will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below. Zacks ESP: Harman currently has an Earnings ESP of -0.69%. This is because the Most Accurate estimate stands at $1.43 per share while the Zacks Consensus Estimate is pegged higher at $1.44 per share. Zacks Rank: Harman has a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise. We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum. Stocks to Consider Here are a couple of companies that have the right combination of elements, according to our model, to post an earnings beat this quarter: Silicon Motion Technology Corp. SIMO with an Earnings ESP of +7.27% and a Zacks Rank #1. Himax Technologies, Inc. HIMX with an Earnings ESP of +16.67% and Zacks Rank #2 Want the latest recommendations from Zacks Investment Research? Today, you can download7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report INTERDIGITL INC (IDCC): Free Stock Analysis Report HARMAN INTL IND (HAR): Free Stock Analysis Report SILICON MOTION (SIMO): Free Stock Analysis Report HIMAX TECH-ADR (HIMX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research