Fiat Chrysler Automobiles N.V. FCAU is set to report first-quarter 2016 results before the opening bell on Apr 26. In the last four quarters, the company delivered breakeven results. Let us see how things are shaping up for this announcement.Why a Likely Positive Surprise?Our proven model shows that Fiat Chrysler is likely to beat earnings this quarter because it has the right combination of the two key components.Zacks ESP: Earnings ESP for Fiat Chrysler is currently pegged at +19.05% as the Most Accurate estimate of 25 cents stands above the Zacks Consensus Estimate of 21 cents. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. Zacks Rank: Fiat Chrysler 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 Fiat Chrysler’s Zacks Rank #3 and positive ESP makes us reasonably confident of an earnings beat.What is Driving the Better-than-Expected Earnings?Fiat Chrysler will benefit from rising sales in the U.S. For the first quarter of 2016, the company’s U.S. sales improved 9% year over year to 551,103 units. The group’s March sales were the best in a decade. Additionally, in the first quarter, sales from Europe rose 16.3% to 264,000 units. These increases in sales volume will have a positive impact on the company’s revenues and earnings.However, Fiat Chrysler is going through a challenging phase owing to product recalls and warranty obligations. In Mar 2016, Fiat Chrysler recalled 60,000 sport-utility vehicles in China due to issues related to the vehicles’ anti-skid braking (ABS) systems. Again in the same month, the automaker recalled 419 Jeep Grand Cherokee, Jeep Liberty and Dodge Viper cars in Russia. Frequent product recalls increase the company’s cost burden and adversely affect the results.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:Ford Motor Co. F has an Earnings ESP of +4.55% and a Zacks Rank #3. 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 FORD MOTOR CO (F): Free Stock Analysis Report FIAT CHRYSLER (FCAU): Free Stock Analysis Report AUTOLIV INC (ALV): Free Stock Analysis Report FERRARI NV (RACE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research