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Disney earnings: $1.07 per share, vs expected EPS of $1.12

The Walt Disney Company shares fell after the company reported quarterly earnings and revenue that missed analysts' expectations on Thursday.

Here's how the company did compared with what Wall Street expected:

  • EPS: $1.07 vs. $1.12 expected according to Thomson Reuters
  • Revenue: $12.78 billion vs. $13.23 billion expected according to Thomson Reuters

The stock fell 3 percent in after-hours trade.

CNBC first reported that Disney approached 21st Century Fox about acquiring some of its entertainment assets, which would leave the latter with a news and sports-focused business.

Fox reported its quarterly results on Wednesday but remained tight-lipped and provided little clarity on the negotiations between the two media giants. In the earnings call, Executive Chairman Lachlan Murdoch maintained that Fox has the necessary scale to grow and compete in a media landscape that's becoming increasingly digital.

That is a challenge for both Disney and Fox as tech-savvy competitors like Netflix continue to post eye-popping revenue growth.

Here's what Wall Street expects for Disney's fiscal fourth quarter:

  • EPS: $1.12, according to Thomson Reuters consensus estimates
  • Revenue: $13.23 billion, according to Thomson Reuters

As part of a strategic shift, Disney previously announced that, starting in 2019, it will no longer stream its movies on Netflix and instead offer them on a new streaming service of its own. The company also intends to launch a separate streaming service for ESPN in 2018.

The company has lately suffered a bruising media battle that ended with Disney backtracking on its decision to bar the Los Angeles Times from its movie screenings amid backlash from the news organizations and notable Hollywood figures. Disney had yanked the newspaper's access after it published a two-part investigation that detailed Disney's financial dealings with the city of Anaheim.

Here's what the Street expects in operating income for each part of Disney's business, according to StreetAccount consensus estimates:

  • Media and networks: $1.58 billion
  • Parks and resorts: $735.1 million
  • Studio $364.4 million
  • Consumer and interactive: $470.4 million

Shares of Disney have edged about 0.7 percent lower, year to date.

This is breaking news. Please check back for updates.

— CNBC's David Faber contributed reporting.