UPDATE 1-O'Reilly Automotive's profit up 16 percent

* Q2 EPS 71 cents, 81 cents on adjusted basis

* Sees Q3 EPS between 69 cents and 73 cents

SAN FRANCISCO, July 28 (Reuters) - O'Reilly Automotive Inc (ORLY.O) on Wednesday posted a 16 percent increase in profit on higher sales.

The automotive parts retailer said that net income was $99.6 million, or 71 cents per share, in the second quarter, up from $85.5 million, or 62 cents per share, a year earlier.

The company earned 81 cents per share on an adjusted basis, which excludes a charge of $15 million for estimated costs set aside to resolve an investigation undertaken by the Department of Justice.

Analysts on average were expecting earnings of 74 cents per share, according to Thomson Reuters I/B/E/S.

Sales rose 10 percent to $1.38 billion, as comparable-store sales rose nearly 8 percent. Analysts expected $1.35 billion.

O'Reilly said it expects earnings of 69 cents to 73 cents per share for the third quarter and $2.64 to $2.74 for the full year.

On an adjusted basis, the company expects to earn between $2.75 and $2.85 for the full year.

Analysts were expecting earnings of 72 cents per share for the third quarter and $2.77 per share for the full year. (Reporting by Poornima Gupta; Editing by Steve Orlofsky)