Athletic apparel retailer Nike (NKE Quick QuoteNKE - Free Report) is set to report fiscal Q4 results on Tuesday after the closing bell. A Zacks Rank #5 (Strong Sell) stock, Nike surpassed the earnings mark in each of the past four quarters. With shares falling drastically this year, is NKE a buy ahead of the release?

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Analysts are expecting the company to post earnings of 13 cents per share, reflecting a 7% plunge versus the same quarter last year. Sales are projected to decline 2% to $10.9 billion during the quarter. Nike’s digital business remains under pressure and points to a slower revenue recovery.

A positive for investors is the company’s strong track record of beating earnings estimates. The global sportswear leader delivered a trailing four-quarter average earnings surprise of 40%, reflecting strong execution despite mounting headwinds.

Still, Nike stock has shed nearly 35% year-to-date and is widely underperforming the major indexes. Our proprietary Zacks Earnings ESP indicator does not conclusively predict another beat for Tuesday’s release. Investors would be wise to exercise caution ahead of the upcoming announcement.