Investors who've followed Motley Fool Stock Advisor recommendation Hasbro's (NYSE:HAS) remarkable run over the last 12 months today got the news they've been waiting a year for. The toy maker released results for the all-important holiday quarter and 2004 as a whole, and though shares were essentially flat in morning trading, its operating results were nevertheless solid.

All three divisions -- domestic toys, games, and international -- saw significant sales and operating income increases for both the quarter and the year. The games business continues to perform especially well. As we discussed when Hasbro's third-quarter results were announced, this high-margin segment delivers more operating income than the other two operations, despite having lower revenues than either one.

This year was no exception. Fourth-quarter game revenues improved more than 9% to $294 million, while operating profit for the division jumped 41% for the full year to $125 million -- or some 43% of the company's total. Monopoly, Trivial Pursuit, Twister, and Magic: The Gathering were all cited as popular brands this year.

Hasbro has succeeded by introducing new products, but also by focusing on its proven brands. Competitor Mattel (NYSE:MAT) has used a similar strategy in recent years. (We covered Mattel's Q4 last week, and also looked at its focus on educational toys in an article today.)

An example is G.I. Joe, best known as a line of popular military action figures: Last year Hasbro made G.I. Joe construction toys, and is developing a trading card game and full-length live action movie based on the brand.

Meanwhile, management believes it can continue to improve operating margins down the line, which would only help profits. (It took one step in late December by announcing plans to close its unprofitable retail stores.) Hasbro, in short, continues to please kids and investors alike.

Since the inaugural April 2002 issue, David Gardner's recommendations for Motley Fool Stock Advisor subscribers have returned a total average of 70.07%, versus the S&P 500's 18.56%.

Dave Marino-Nachison can be reached via email. He doesn't own shares of any of the companies mentioned in this article.