AMC Entertainment Holdings, Inc. AMC – a leisure and recreation services company –is scheduled to report first-quarter 2016 financial numbers on Apr 29, before the market opens. Last quarter, the company posted a positive earnings surprise of 7.50%. Let’s see how things are shaping up for this announcement. Why a Likely Positive Surprise? Our proven model shows that the company is likely to beat the Zacks Consensus Estimate because it has the right combination of two key ingredients. Zacks ESP: AMC Entertainment has an Earnings ESP of +5.56%. This is because the Most Accurate estimate stands at 19 cents, while the Zacks Consensus Estimate is pegged lower at 18 cents. This is meaningful and a leading indicator of a likely positive earnings surprise. Zacks Rank: The company has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions. The combination of AMC Entertainment Zacks Rank #3 and positive ESP makes us fairly confident of an earnings beat this season. What's Driving the Better-than-Expected Earnings? AMC Entertainment has been investing a great deal in renovating and refurbishing its multiplexes through enhancements like reclining seats, improved foods and beverages, dine-in theaters, and advanced sound and digital equipment to draw viewers. Also, the company recently signed an agreement to buy theater chain, Carmike Cinemas Inc. CKEC, in a cash-and-debt deal valued at about $1.1 billion. The acquisition of the suburban and rural-focused company will allow AMC Entertainment to geographically diversify its operations and drive business expansion. Stocks to Consider AMC Entertainment is not the only company looking up this earnings season. Here are two other companies that investors may consider as our model shows they too have the right combination of elements to post an earnings beat this quarter. Royal Caribbean Cruises Ltd. RCL with an Earnings ESP of +6.45% and a Zacks Rank #2. Regal Entertainment Group RGC with an Earnings ESP of +8.00% and a Zacks Rank #3 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 AMC ENTERTAINMT (AMC): Free Stock Analysis Report ROYAL CARIBBEAN (RCL): Free Stock Analysis Report REGAL ENTMNT GP (RGC): Free Stock Analysis Report CARMIKE CINEMA (CKEC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research