General Motors Company GM is set to report first-quarter 2016 results on Apr 21. In the last quarter, the company delivered a positive earnings surprise of 12.10%. Let us see how things are shaping up for this announcement.Why a Likely Positive Surprise?Our proven model shows that General Motors is likely to beat earnings this quarter because it has the right combination of the two key components.Zacks ESP: Earnings ESP for General Motors is currently pegged at +0.97% as the Most Accurate estimate of $1.04 stands above the Zacks Consensus Estimate of $1.03. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise.Zacks Rank: General Motors currently carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating on earnings. Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.The combination of General Motors’ Zacks Rank #3 and a positive ESP makes us reasonably confident of an earnings beat.Factors Influencing this QuarterGeneral Motors sold 683,698 vehicles in the U.S. in the first quarter of 2016 with retail sales rising 7.8% during the quarter. Higher quarterly retail sales should lead to better revenues. In addition, General Motors has been gaining new contracts for business expansion. The automaker is also focused on investment in innovative technologies and vehicles, which should provide sustained growth.However, General Motors is facing a challenging situation due to a delay in the recall of 2.6 million vehicles with defective ignition switches. Recently, the company also settled the third ignition switch case among the six defective ignition switch cases which were supposed to go on trial this year. This may weigh on the company’s financials.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:BorgWarner Inc. BWA has an Earnings ESP of +1.28% and a Zacks Rank #2 (Buy). 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 BORG WARNER INC (BWA): Free Stock Analysis Report AUTOLIV INC (ALV): Free Stock Analysis Report GENERAL MOTORS (GM): Free Stock Analysis Report FERRARI NV (RACE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research