NEW YORK (TheStreet) -- Accenture (ACN) will report fiscal third-quarter earnings Thursday before the opening bell. Although the enterprise IT consulting space has become more competitive, spurred by the rise of rival Cognizant (CTSH) (stock is up 20%), it's tough to see how Accenture's own hot streak -- resulting in 10% stock gains -- will diminish.
The company remains an industry leader.
Not only has Accenture found ways to capitalize on higher-than-expected demand for its technology services, the Dublin, Ireland-based company has become more creative in its pricing strategy. This has enabled Accenture to deliver services at lower cost without sacrificing margins.
The outlook for increased revenue and profitability looks bright.
Broadly known for its global IT consulting expertise, Accenture is diversifying its business into high-growth, high-margin areas like strategic advertising and marketing. These areas will see significant growth opportunities in the next couple of years.
The market for digital marketing is projected to grow to over $43 billion in the next two years, nearly doubling what it was in 2013. The demand will be driven by the need of business to extract better returns on their marketing investments. Businesses with large marketing budgets will need better ways to reach their target audience, especially in a world where consumers prefer personalized content on all their devices.
What's more, by the year 2020, roughly $103 billion will be spent on search marketing, display advertising, social media marketing and email marketing, says Forrester. Accenture's marketing capabilities will work well for shareholders, who have already been buoyed by its recent deals for Agilex Technologies, a privately-held company that specializes in digital solutions and IT services.