NEW YORK (TheStreet) -- DirecTV (DTV - Get Report) shares are up 0.85% to $93.62 in early market trading on Wednesday following reports that U.S. regulatory approval of the company's proposed merger with AT&T (T) could come as early as next week, according to Reuters.

AT&T's proposed $48.5 billion acquisition of DirecTV would combine the second largest wireless carrier and the largest satelite television providers in the U.S.

The Department of Justice has already completed its assesment of whether the deal, which was first proposed in May 2014, violates anti-trust laws, according to Reuters' sources.

The Federal Communications Commission and AT&T have been in talks for weeks over conditions for the merger, according to sources.

AT&T shares are down 0.2% to $35.45 so far in trading today.

TheStreet Ratings team rates DIRECTV as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DIRECTV (DTV) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • DIRECTV has improved earnings per share by 32.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, DIRECTV increased its bottom line by earning $5.42 versus $5.19 in the prior year. This year, the market expects an improvement in earnings ($5.86 versus $5.42).
  • Net operating cash flow has slightly increased to $1,636.00 million or 2.89% when compared to the same quarter last year. Despite an increase in cash flow, DIRECTV's cash flow growth rate is still lower than the industry average growth rate of 15.21%.
  • 47.51% is the gross profit margin for DIRECTV which we consider to be strong. Regardless of DTV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.96% trails the industry average.
  • You can view the full analysis from the report here: DTV Ratings Report