Castlight Health, Inc. CSLT is set to report first-quarter 2016 results on May 10. Last quarter, the company posted a positive earnings surprise of 4.6%. Let us see how things are shaping up for this announcement.Factors to ConsiderCastlight Health operates as a provider of cloud-based software. It enables enterprises to gain control over their rapidly escalating health care costs.The company reported encouraging fourth-quarter results. Revenues increased on a year-over-year basis and the reported loss also narrowed from the year-ago figure. Subscription revenues during the quarter came in at $19.9 million, up 50% on a year-over-year basis.Castlight Health’s non-GAAP gross margin for the fourth quarter was 58.6%, up from 58.3% reported in the year-ago quarter. The year-over-year growth in gross margin was primarily due to a higher revenue base.Furthermore, significant investments in growth areas for improving implementation timelines, particularly with upsell products will boost profitability going forward.However, competition from form the likes of Medidata Solutions, Inc. MDSO, Aetna Inc. and Merge Healthcare Incorporated remains a headwind.Earnings WhispersOur proven model does not conclusively show that Castlight Health is likely to beat the Zacks Consensus Estimate in the upcoming release. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately, this is not the case here as elaborated below.Zacks ESP: The Earnings ESP for Castlight Health is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 21 cents per share.Zacks Rank: Castlight Health has a Zacks Rank #3 (Hold). Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.We caution against stocks with 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 ConsiderHere are some companies, which are worth considering, as our model shows that they have the right combination of these two elements:TiVo Inc. TIVO with Earnings ESP of +25.00% and a Zacks Rank #1 (Strong Buy)Synopsys Inc. SNPS with Earnings ESP of +6.38% and a Zacks Rank #1Want 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 MEDIDATA SOLUTN (MDSO): Free Stock Analysis Report TIVO INC (TIVO): Free Stock Analysis Report SYNOPSYS INC (SNPS): Free Stock Analysis Report CASTLIGHT HLTH (CSLT): Free Stock Analysis Report To read this article on Zacks.com click here.