Japanese restaurant Kura Sushi (KRUS Quick QuoteKRUS - Free Report) is set to report fiscal third-quarter earnings results next week on Tuesday after the bell. The revolving sushi service model appears to have taken a hit in the latest period, with KRUS shares moving lower in recent sessions on disappointing preliminary results. But with the downside impact potentially priced in, is KRUS stock a buy ahead of the earnings announcement?

The sushi provider is expected to post a loss of -$0.06/share, which would reflect negative growth of -137.5% relative to the same quarter in the prior year. Earnings estimates for the quarter have declined 130% in the past 60 days. Revenues are projected to have risen 28.2% to $63.1 million.

Kura Sushi has missed earnings estimates in two of the past four quarters, posting an average miss of -160.9% over that timeframe. Kura Sushi USA is a Zacks Rank #5 (Strong Sell) stock.

Earnings announcements typically bring enhanced volatility. Investors should proceed with caution heading into the results.