AutoNation, Inc. AN is set to report first-quarter 2016 results on Apr 22. In the last quarter, the company posted a negative earnings surprise of 8.57%. Let us see how things are shaping up for this announcement.Why a Likely Positive Surprise?Our proven model shows that AutoNation is likely to beat earnings this quarter because it has the right combination of the two key components.Zacks ESP: Earnings ESP for AutoNation is currently pegged at +2.15% as the Most Accurate estimate of 95 cents stands above the Zacks Consensus Estimate of 93 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise.Zacks Rank: AutoNation currently carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings. Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.The combination of AutoNation’s Zacks Rank #2 and positive ESP makes us reasonably confident of an earnings beat.What is Driving the Better-than-Expected Earnings?AutoNation is positioned to benefit from the recovery in the auto market, backed by its optimal brand and market mix as well as a disciplined cost structure. Rising average age of cars and trucks in the U.S., a robust consumer credit environment, and an increase in new product offerings from automotive manufacturers are leading to a strong sales environment.In addition, the company is poised to benefit from the expansion of its business through acquisitions.Stocks to ConsiderHere are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:Ford Motor Co. F has an Earnings ESP of +4.55% and a Zacks Rank #3 (Hold). The company is expected to report first-quarter 2016 results on Apr 28.Autoliv, Inc. ALV has an Earnings ESP of +1.32% and a Zacks Rank #3. The company’s first-quarter 2016 financial results are scheduled for release on Apr 29.Ferrari N.V. RACE has an Earnings ESP of +12.5% and a Zacks Rank #3. The company will report first-quarter 2016 financial numbers on May 2.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 >>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 AUTONATION INC (AN): Free Stock Analysis Report FORD MOTOR CO (F): Free Stock Analysis Report AUTOLIV INC (ALV): Free Stock Analysis Report FERRARI NV (RACE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research