Edgewell Personal Care (EPC) saw its stock soar 5.71% in pre-market trading on Thursday, despite reporting lower-than-expected fourth-quarter earnings. The company's strategic move to sell its North American feminine care business for $340 million appears to have overshadowed the earnings disappointment.

Edgewell reported adjusted earnings per share of $0.68 for the fiscal fourth quarter, falling short of analysts' expectations of $0.81. However, the company's net sales rose 3.8% to $537.2 million, slightly beating the consensus estimate of $534.3 million. The sales growth was primarily driven by a 6.9% organic increase in international markets, offsetting a 0.6% decline in North America due to increased promotional activities.

The highlight of Edgewell's announcements was the agreement to sell its North American feminine care business, which includes brands like Stayfree, Playtex, and Carefree, to Swedish health and hygiene firm Essity for $340 million. CEO Rod Little stated that this divestiture would sharpen the company's focus on core categories such as sunscreen and shaving while strengthening its financial position. Additionally, Edgewell authorized a new $100 million share repurchase program, signaling confidence in its future prospects.