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What: Shares of Badger Meter (NYSE:BMI) weren't measuring up today, falling as much as 15% after reporting an much lower profits than expected in it first quarter.

So what: The industrial-supplies specialist missed EPS estimates by $0.30, reporting a profit of just $0.20 a share, down from $0.42 a year ago. Revenue dropped 6% to $71.8 million, also below expectations of $80 million, as Badger blamed bad weather and cuts to municipal budgets for the shortfall. The manufacturer of meters and other tools for utility companies did, however, make a small acquisition and signed an exclusive agreement that could give it new contracts with North American water utilities.

Now what: With federal budget cuts continuing and pressure on municipal governments to get out of the red, Badger may continue to see uncertainty in spending on upgrades and other products and services it offers. Management said it expected to see "a return to more normal patterns" in the coming quarters, but we should see a round of cuts in analyst estimates for the year following such a severe earnings miss.

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