Leading manufacturer of motion & control technologies and systems, Parker-Hannifin Corporation PH is slated to report third-quarter fiscal 2016 results on Apr 26, before the opening bell.Last quarter, the company posted a positive surprise of 28.8%. The stock beat earnings thrice in the trailing four quarters, and boasts an average positive surprise of approximately 3.4%.We expect the company to continue its strong performance in the to-be-reported quarter.Why a Likely Positive Surprise?Our proven model shows that Parker-Hannifin is likely to beat earnings because it has the right combination of two key ingredients.Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.69%. This is very meaningful and a leading indicator of a likely earnings surprise.Zacks Rank: Parker-Hannifin carries 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, the Sell-rated stocks (Zacks Rank #4 and 5) should not be considered going into an earnings announcement.The combination of Parker-Hannifin’s Zacks Rank #3 and a positive ESP makes us confident of an earnings beat in the upcoming report.Key Factors in the Third QuarterParker-Hannifin’s diligent “Win Strategy,” which forms the core of its business system, has been a major growth driver over the past few quarters as well as cushioned the company from major macroeconomic woes. The Win Strategy, which focuses on critical areas including engaging people, enhancing customer experience and pursuing profitable growth, was upgraded in the fiscal first quarter. This strategy is expected to be conducive to fiscal third-quarter results as well.In addition to this, the company’s restructuring activities over the past few quarters has borne fruits and are expected to support the fiscal third-quarter financials. Parker-Hannifin has slowly streamlined its business by undertaking a series of simplification initiatives, which have contributed positively to the company’s overall profitability.Furthermore, Parker-Hannifin’s buyout of U.K.-based President Engineering Group Limited (“PEGL”) in Sep 2015 is expected to boost top-line growth. Also, last year the company had made an equity investment in an industry-leading software provider, Exosite LLC, to foster industrial Internet of Things applications and services. We believe that such strategic partnerships diversify the company’s portfolio, thereby benefiting financial performance.Also, the company’s strategic product launches to widen its portfolio and increase customer base has proved to be beneficial in the past by augmenting sales growth. In this regard, market traction of some of the recently launched products like VSO MAX HP and VSO LowPro holds promise.Despite these positives, prolonged sluggishness in key natural resources market and continuous currency fluctuations are proving to be major drag on the company’s financials. The company’s challenges in natural resources are largely attributable to softness in oil and gas, agriculture, mining and construction equipment markets.Stocks That Warrant a LookHere are some 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:Crane Co. CR has an Earnings ESP of +1.16% and a Zacks Rank #2.Canadian National Railway Company CNI has an Earnings ESP of +1.47% and a Zacks Rank #1.Nordson Corporation NDSN has an Earnings ESP of +1.09% and carries a Zacks Rank #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 CDN NATL RY CO (CNI): Free Stock Analysis Report CRANE CO (CR): Free Stock Analysis Report PARKER HANNIFIN (PH): Free Stock Analysis Report NORDSON CORP (NDSN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research