Hasbro Inc. (HAS) saw its stock soar over 5% in pre-market trading on Thursday following the release of its fourth quarter 2024 financial results. The toymaker reported better-than-expected earnings and revenue for the quarter, boosted by strong demand for its consumer products segment during the holiday period.

For the fourth quarter ended December 29, 2024, Hasbro reported adjusted earnings of $0.46 per diluted share, surpassing the consensus estimate of $0.34 per share. Revenue came in at $1.10 billion, beating the forecasted $1.03 billion.

The company's consumer products segment, which includes popular brands like Nerf, Play-Doh, and Transformers, saw revenue decline only slightly by 1% year-over-year. Meanwhile, the Wizards of the Coast and Digital Gaming segment, home to brands like Magic: The Gathering and Dungeons & Dragons, witnessed a 7% drop in revenue due to the lap of the Lord of the Rings set.

However, Hasbro's entertainment segment, which includes film and TV production, saw a significant 91% plunge in revenue compared to the previous year's quarter. This was primarily due to the divestiture of the eOne Film and TV business executed in late 2023.

Alongside the financial results, Hasbro unveiled a new strategic plan called "Playing to Win," which aims to drive growth and operational efficiency through 2027. The plan focuses on expanding the reach of its iconic brands, increasing engagement with fans aged 13 and above, and building digital and direct-to-consumer capabilities.

As part of the strategy, Hasbro expects to deliver average mid-single-digit revenue growth and an annual operating profit margin improvement of 50-100 basis points through 2027. Additionally, the company targets $1 billion in gross cost savings, with approximately half expected to drop to the bottom line.