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D.R. Horton Inc., the biggest U.S. homebuilder, reported a narrower quarterly loss Tuesday that beat analyst estimates, sending shares up.

Horton (DHI, Fortune 500) reported a first-quarter loss of $62.6 million, or 20 cents per share, compared with a loss of $128.8 million, or 41 cents per share, a year earlier.

Analysts had predicted a loss of 56 cents per share, according to Reuters Estimates.

The results included $56.2 million in pre-tax charges for inventory impairments and write-offs of costs for land option contracts the company does not intend to pursue. Last year, the company reported charges for similar items of $245.5 million.

Throughout the U.S. housing downturn, considered by most to be the worst since the Great Depression, builders have been forced to impair the value of their land, much of it bought at peak prices during the boom years of 2002-2006.

Homebuilding revenue fell to $900.3 million from $1.7 billion, reflecting the ongoing difficulties of an operating environment in which a glut of supply and tight lending standards should result in further reductions in home prices, wrote Soleil Group analyst Anna Torma instant cash advance.

In these conditions, builders have collectively shifted their focus to generating cash as a means of surviving the downturn, even at the expense when necessary of profitability.

Horton, for example, generated $196 million in cash from operations in the quarter, "reflecting the company’s aggressive pricing strategy and focus on cash," wrote Credit Suisse analyst Dan Oppenheim.

The company ended the quarter with $1.9 billion in cash, and JPMorgan analyst Michael Rehaut noted approvingly: "Cash flow and balance sheet remain strong, in our view."

Horton’s shares were up 16.69%, or $1.02, at $7.13. 

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