Ingram Micro Holding Corp. (INGM) saw its stock plummet by 5.20% in pre-market trading on Wednesday, despite reporting better-than-expected earnings for the fourth quarter of fiscal 2024. The technology distribution company faced several challenges during the quarter that weighed on its performance and raised concerns among investors.

In its Q4 earnings call, Ingram Micro reported a return to year-over-year top-line growth of 3.5% on an FX-neutral basis, driven by strength in Asia Pacific and Latin America regions, as well as a recovery in North America. However, the company's gross profit margin declined by 51 basis points to 7.01%, primarily due to a higher mix of sales towards enterprise customers and lower-margin regions like Asia Pacific.

One of the key factors behind the stock's plunge was the company's disclosure of challenges in its India operations. Ingram Micro faced heightened competitive pressures and irrational pricing behaviors from global, sub-regional, and local players in the Indian market. The company recorded discrete charges related to a fraud matter in its India operation, including inventory write-offs and Goods and Services Tax (GST) adjustments, which impacted both gross profit and operating expenses.