ITT Educational Services Inc. ESI is set to report first quarter 2016 results on Apr 29, before the market opens.Last quarter, it had posted a positive surprise of 144.4%. Let’s see how things are shaping up for this announcement.Factors to Consider This QuarterITT Educational Services ended 2015 with strong earnings in the fourth quarter. However the company witnessed weak enrollment and sales trends in the quarter. In fact, it could be a while before the company regains stability in its top and bottom lines.ITT Educational Services is undergoing several changes to improve its enrollment scenario and efficiency. In 2015, the education company closed six of its campuses and decreased the number of campuses offering bachelor degree programs from 130 to 125. Effective from Dec 2015, the company also ceased to accept new enrollment at 10 campuses, as it plans to evaluate demand in these markets over 2016. While these trimmings may improve the company’s efficiency in the long term, its total enrollment and new enrollment levels will be hurt in the soon-to-be reported quarter. Since over 90% of the company’s revenues are generated from tuitions, it is not likely to recover in the first quarter of 2016, as enrollment will remain soft.However, the company reported sequential improvement in operating margin in the prior quarter, owing to the company’s cost control efforts. This positive trend may have continued into the first quarter as well.Earnings WhispersOur proven model does not conclusively show that ITT Educational Services is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. That is not the case here as you will see below.Zacks ESP: Earnings ESP for ITT is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 19 cents.Zacks Rank: Although ITT Educational Services’ Zacks Rank #3 increases the predictive power of ESP, its ESP of 0.00% makes surprise prediction difficult.However, we caution against stocks with Zacks Rank #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.Stocks to ConsiderHere are some companies in the consumer discretionary sector that can be considered as our model shows that they have the right combination of elements to post an earnings beat this quarter:Royal Caribbean Cruises Ltd. RCL, with an Earnings ESP of +6.45% and a Zacks Rank #2CBS Corp. CBS, with an Earnings ESP of +1.08% and a Zacks Rank #3Masonite International Corp. DOOR, with an Earnings ESP of +9.52% and a Zacks Rank #3Want 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 CBS CORP (CBS): Free Stock Analysis Report MASONITE INT CP (DOOR): Free Stock Analysis Report ROYAL CARIBBEAN (RCL): Free Stock Analysis Report ITT EDUCATIONAL (ESI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research