CarMax Inc. KMX is set to report fourth-quarter fiscal 2016 (ended Feb 29, 2016) results on Apr 7. Last quarter, the company posted a negative earnings surprise of 7.35%. Let’s see how things are shaping up for this announcement.Why a Likely Positive Surprise?Our proven model shows that CarMax is likely to beat earnings this quarter because it has the right combination of the two key components.Zacks ESP: Earnings ESP for CarMax is currently pegged at +1.43% as the Most Accurate estimate of 71 cents stands above the Zacks Consensus Estimate of 70 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. Zacks Rank: CarMax 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 earnings. Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.The combination of CarMax’s Zacks Rank #3 and positive ESP makes us reasonably confident of an earnings beat.What is Driving the Better-than-Expected Earnings?CarMax pursues an aggressive store growth policy, driven by improvements in the sales environment in the U.S. New stores help the company penetrate into new markets, thereby boosting sales.In addition, CarMax places greater emphasis on the used-car market, which helps it to outperform other players in the industry. The company is among the strongest operators in its peer group. Also, CarMax consistently enhances shareholder value through share buybacks, which helps boost earnings per share. All these factors are likely to drive the company’s fourth-quarter fiscal 2016 results.Other Stocks to ConsiderHere 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:The Goodyear Tire & Rubber Company GT has an Earnings ESP of +5.71% and a Zacks Rank #2 (Buy). The company’s first-quarter 2016 financial results are scheduled for release on May 4.Ferrari N.V. RACE has an Earnings ESP of +12.5% and a Zacks Rank #1 (Strong Buy). The company will report first-quarter 2016 financial numbers on May 2.Tenneco Inc. TEN has an Earnings ESP of +12.61% and a Zacks Rank #2. The company is expected to report first-quarter 2016 results on Apr 25.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 CARMAX GP (CC) (KMX): Free Stock Analysis Report TENNECO INC (TEN): Free Stock Analysis Report GOODYEAR TIRE (GT): Free Stock Analysis Report FERRARI NV (RACE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research