Toyota (NYSE:TM) reported its first-quarter profits this week, and they were excellent: a strong $3.17 billion, thanks to big sales in Japan and continued strength here in the United States.

But the Japanese giant made even bigger news when it announced its expectations for the year to come: a huge increase in its already-big profits. In this video, Fool contributor John Rosevear breaks down Toyota's great result and explains why he thinks Toyota's prediction of a  massive profit surge might actually be conservative.