Beyond the negative headlines, some earnings bright spots

By Kristina Cooke

NEW YORK, July 30 (Reuters) - In a financial reporting season littered with subpar results, a handful of U.S.companies on Wednesday showed it is possible to thrive in bleak times.

Still some have managed better results through cost-cutting measures, while others have benefited from pockets of strength in their overseas businesses or picked up market share from struggling competitors.

Tobacco company Reynolds American (RAI.N: Quote, Profile, Research) is a case in point. Reynolds, which makes Camel and Pall Mall cigarettes, posted a higher quarterly profit on Wednesday helped by price increases and cost-cutting measures. It also benefited as the weak economy and high gasoline prices pushed consumers to the lower-priced brands the company sells.

Investment bank Lazard Ltd (LAZ.N: Quote, Profile, Research), meanwhile, demonstrated how a firm that does not rely on capital-intensive lending, trading and underwriting can perform well, even as a breakdown in credit and mortgage markets squeezes the big, highly leveraged Wall Street banks.

Lazard posted a rise in quarterly profit on higher advisory and asset-management fees, beating Wall Street expectations despite the broad slowdown in worldwide deal activity.

With about 60 percent of S&P 500 companies having reported earnings so far, analysts now estimate that overall earnings will fall 17.9 percent, according to Thomson Reuters proprietary research. Those estimates have been inching down as the earnings season progresses.

The handful of strong performers who just reported have anticipated the downturn better than others.

"Many of these company managers had planned for the difficult economic environment and have taken action such as raising prices and kept inventories lean," said Eric Kuby, chief investment officer at North Star Investment Management in Chicago.