NEW YORK (CNN/Money) - General Electric reported improved first-quarter earnings Friday that beat Wall Street expectations and issued an upbeat forecast.

The conglomerate, whose businesses include financial services, media and manufacturing, earned $4 billion, or 38 cents a share, up from $3.2 billion, or 32 cents a share, a year earlier. Analysts had expected 37 cents.

Shares GE (up $0.87 to $36.37, Research) gained nearly 2.5 percent in morning trading.

The company reported revenue of $39.8 billion, up 19 percent and topping the First Call forecast of $38 billion.

GE also raised the lower end of its full-year earnings guidance, saying it expects to earn between $1.78 to $1.83, compared with the former target of $1.76 to $1.83.

In its presentation to investors, GE said it expects second-quarter earnings between 42 cents and 44 cents a share, with revenue of $41 billion to $42 billion. The earnings guidance is roughly in line with the consensus forecast of 43 cents a share, while the revenue would be roughly at or above analysts' forecast of $40.9 billion.

"We're looking at 10 of 11 divisions having double digit revenue growth," said chief financial officer Keith Sherin in a conference call with investors. "Depending on where energy comes in we could have the whole portfolio come in with double-digit gains."

The company also saw broad-based gains in the first quarter, as nine of its 11 divisions posted revenue growth of 10 percent or more and only the energy and insurance segments saw earnings declines.

It said it posted 10 percent growth excluding acquisitions and changes in currency exchange rates, which the company said topped its target of 8 percent growth in that measure.

The company said it has been able to raise prices to deal with rising commodity prices. Improved pricing helped raise revenue by $224 million in the quarter, according to the company, while increased material costs were limited to $209 million.

"We are on track for double-digit growth in earnings and cash flow in 2005 and beyond," said a statement from CEO Jeff Immelt.