Every authenticator has a little built-in clock. This clock keeps track of the number of seconds since, for example the WoW release date, Tigole's birthday or whenever. Each authenticator also has a unique key, which it uses to encrypt this number of seconds into what looks like a completely random number. There is no way, without knowing the encryption key, to guess what number is going to be displayed at any point in time. Even if the hacker has all the numbers you entered before, he can't extrapolate that into what number will be showing next.
The hacker also can't hack into the device itself to find out it's key, because it doesn't connect to the computer in any way. Even if the hacker were the mailman who delivered the authenticator to your house, he would have to open it up and extract the hardware that contained the key. These devices are generally tamper-resistant and will purge themselves when opened.