Toyota (NYSE:TM) Shares Soar on Strong Guidance

The drop in profits for Toyota (NYSE:TM) in the third quarter wasn't unexpected, as continual fallout was expected from the millions of vehicles recalled last year, which gave the company a major black eye.

Earnings dropped almost 40 percent in the fiscal third quarter, coming in at about $1.1 billion. Sales in the quarter dropped by 11.7 percent.

The good news is full year earnings estimates are far above prior projections of 350 billion yen, being upwardly revised to $490 billion yen.

The company also received a positive report concerning its acceleration problem today, with NASA concluding there were no electrical problems which contributed to the issue. They concluded it was a mechanical failure.

Toyota was trading at $88.84, gaining $3.71, or 4.36 percent, as of 2:58 PM EST.